Advantages of Forming a Holding Company in the UK

Holding company formation & tax advantages

The UK government has recognised the need to offer this type of arrangement to businesses that are keen to take advantage of a UK holding company registration, and they are actively offering a real alternative to getting set up in the Benelux nations or elsewhere.

Under taxation laws in the United Kingdom, holding companies receive substantial tax relief when receiving revenues from foreign subsidiary companies. This relief is delivered by offering a reduction in UK corporation tax obligations that is equal to the amount of foreign withholding tax that is paid on dividend amounts, and this also takes into consideration any taxes paid on overseas profits in general.

In addition to this, holding company registered in the Great Britain are exempt from taxes on subsidiary dividends if they number less than 50 employees (the balance sheet must also be under the 10m Euros level). In the event that a subsidiary firm is sold, no taxes will be incurred by a holding company. This can potentially be a complex process, and Coddan specialists can offer expert advice about all aspects of a holding company registration.