
The United Kingdom is one of the world's leading locations for (holding) companies. In recent years it as been most succesful in engineering domestic participation exemptions to attract multinational business and having one of the most comprehensive double tax treaty networks in the world. A competitive double taxation relief system for foreign dividends, no withholding tax on UK-source dividends paid to non-resident shareholders, and a corporation tax exemption for capital gains from the disposal of subsidiary company shares allows for great advantages for foreign-owned corporate groups and high net worth entrepreneurs.
With effect from 1 July 2009 the Finance Act 2009 now provides a complete exemption from UK corporation tax for overseas dividends provided that conditions are met and certain anti-avoidance rules are not applicable.
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