If I Own a Foreign Company, Do I Pay UK Corporation Tax?

A company registered abroad is not liable for UK Corporation Tax simply because the shareholder is a UK citizen. However, if the company is managed and controlled from the UK, meaning strategic decisions are made by directors living here, HMRC may treat the company as a UK tax resident and tax its worldwide profits.

Individually, UK tax residents must also pay personal income tax on any dividends or salary received from the foreign company, as they are generally required to declare their worldwide income to HMRC.