Does my UK company pay UK tax if I live abroad?
This is the single most common — and most expensive — misconception we see. Many overseas owners believe that because they live in Dubai, Riyadh or Cairo, their UK company owes no UK tax. That is not how it works. A company incorporated in the UK is UK tax resident by default, and pays Corporation Tax on its profits regardless of where its directors live.
What usually happens
HMRC treats a UK-incorporated company as UK tax resident simply because it was formed in the UK (the 'incorporation rule'). It must register for Corporation Tax, file a Company Tax Return (CT600), and pay Corporation Tax — currently 19% on profits up to £50,000, 25% above £250,000, with marginal relief in between. Your own personal tax residency is a completely separate question (use our residency checker for that). In rare cases a double-tax treaty's tie-breaker can move a company's residence if its central management and control is genuinely exercised abroad and the other country taxes it as resident — but you cannot assume this, and the safe default is: your UK company owes UK Corporation Tax.
What to check first
- 1
Accept the default: a UK-incorporated company is UK tax resident and owes Corporation Tax.
- 2
Register for Corporation Tax with HMRC within ~3 months of starting to trade.
- 3
File the Company Tax Return (CT600) and pay the tax 9 months and 1 day after your period end.
- 4
Keep your personal residency separate — use the SRT checker for your own position.
- 5
Check how your country's double-tax treaty affects tax on dividends or salary you take.
Official sources
When to speak to a professional
If you're unsure how much Corporation Tax your company owes, how a treaty affects you, or how to take money out tax-efficiently. We prepare and file your accounts and CT600.
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Disclaimer
General educational guidance only — not legal, tax, accounting, immigration, investment or financial advice. We don't guarantee the information is complete, current or suitable for your situation. Always check official sources (GOV.UK, Companies House, HMRC, the relevant professional body) and speak to a qualified professional before acting. Last reviewed: June 2026.