The Corporate Tax Team provides cross-border advice in many different situations, for example:
Cross-border mobile employees
We often advise businesses in relation to the tax consequences of overseas employees coming to work in the UK. For example, we have recently considered whether a visiting employee is tax resident in the UK. We have also provided advice on the social security obligations facing a UK subsidiary in respect of staff seconded from a sister company in another European country. In addition, we have also considered whether a dual-contract structure would be suitable for an employee working in the UK and elsewhere in Europe.
It is important to understand the VAT consequences where supplies of goods and services are made in other jurisdictions.
We have recently considered the UK VAT liability of a US company providing services in the UK. This initially required a detailed analysis of the nature of the various services being provided in order to establish how the VAT rules could apply. We could then assist the client to choose the most appropriate structure for their business.
Similarly, we have also advised in relation to the VAT consequences for a Canadian company receiving services from a UK company.
Overseas business trading in the UK
When overseas businesses wish to trade in the UK it is important that they understand their tax obligations and the merits of trading through a branch or a UK incorporated company. We have advised EU and non-EU resident businesses in respect of the UK corporation tax, VAT and employment tax positions to enable the overseas business to make a suitable commercial decision.
Non-UK resident person acquiring land in the UK
The taxation of real estate in the UK has altered significantly over the last few years. For example, capital gains tax and corporation tax may be payable when non-UK resident tax payers dispose of UK land. Furthermore, the rates of residential stamp duty land tax have significantly increased in some situations, becoming punitive, which can affect all purchasers (whether resident in the UK or not). It is therefore really important that overseas investors fully understand the requirements and potential tax charges. We are very well placed to provide suitable advice and have advised numerous clients based overseas in respect of that acquisition of UK property.
Sales/ purchases of UK companies with overseas groups
Many of the company sales and purchases on which we advise involve other jurisdictions; whether overseas subsidiaries of branches outside the UK. We find that it is important to engage with overseas advisers as soon as possible (where necessary) to ensure that nothing is lost in translation. Many countries have tax anomalies that are not replicated in the UK; therefore engaging with overseas professionals is often imperative. Birketts is part of the International Advisory Group (IAG) network of professional firms, which we can use to help our clients access quality advice across the globe. In addition, the members of our corporate tax team have valuable personal and professional experience living overseas and working for international firms.