1. If the owner of an offshore company is a resident of the UK, can this company be deemed a non-resident? 

Company residence depends on the location of the management and control headquarters. If the primary decision-making process, with respect to the basic operations of the business, is carried out in the UK, regardless of the jurisdiction of the company, it will be considered a UK resident. Accordingly, all UK resident taxes will be applied to this company.
The decision-making process includes: 

- The signing of key agreements; 
- The signing of the Board of Directors resolutions. 

2. In which cases is the VAT returned to the buyer upon the purchase of a 'new build'? 

Usually, the construction work is subject to the standard VAT rate - 20%. But if construction is the main purpose of the company, the application of the zero rate of VAT is possible on the work done in the process of construction of a new house or apartment. In this case, the zero rate is subject to the cost of labour and materials.

When a company is building a new house or apartment, the zero rate applies only under certain conditions: 

- If the building meets the zero rating requirements of HM Revenue & Customs (HMRC)*; 

- If the building is considered to be new; 

- When the work was carried out and the type of work done is taken into account. 

* Which houses or apartments may qualify for a zero-rating? 

- Stand-alone house for the accommodation of dwellings

- The house is separated from any other premises - there are no doors or internal communication links with other houses or apartments; 

- It can be used independently of any other estate; 

- There is a building permit; 

- It can be sold independently of any other property


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