One of our UK-based client companies has three individual shareholders.
One of the shareholders decided to move to France permanently, with his family.
It was decided that the company should continue to run as normal in the UK, despite this shareholder’s relocation.
We advised on how his change of residency would affect the running of the company. In particular, we focused on the factors affecting UK Corporation Tax and assessed where there would be any overlap or duplication with French corporate taxes.
Guidance was provided in terms of structuring board meetings and keeping the central management and control of the company within the UK for corporation tax purposes.
In addition, we provided advice in relation to the Statutory Residency Test for the shareholder in question.
Importantly, we have helped the company to avoid becoming simultaneously entangled in both the French and UK tax systems and ensured that the shareholder and his family have minimised their exposure to Income Tax and Capital Gains Tax.