Non-UK companies such as fund management companies established in Guernsey, Jersey and the Cayman Islands, foreign investment holding companies and non-UK general partners of limited partnership funds are generally treated as non-UK tax resident, so long as their “central management and control” (the strategic decision making typically exercised by the company’s board) is conducted outside the UK. Relevant board procedures will include a majority of the directors being non-UK residents, and any UK based directors only participating in meetings while physically present outside the UK.
Impact of Covid-19
The Covid-19 related UK-wide (and international) lock-down and related travel restrictions mean that UK-based directors are currently unable to leave the UK for such board meetings. A principal question is whether any director therefore participating from the UK, e.g., via zoom or phone, risks the foreign company becoming UK tax resident and, if so, what preventative measures should be taken.
MJ Hudson works with clients in the fields of law, international administration, fund management, investment advisory, and IR and marketing, across both alternative and traditional asset classes.Gresham House Strategic PLC (LON:GHS) has a 1.3% ownership of MJ Hudson as of June 2018.
