Taxes and Double Tax Treaties
A UK Ltd keeps its own accounts and files annual accounts. For international trade, an English company is convenient because counterparties work with a clear British legal entity while bank accounts can be opened in the currencies of the main markets.
Traditionally, a company in England has never been an offshore or tax-free company. However, if one considers an English LLP or the formerly popular Scottish LP, they are also legal entities: in practice an English company that is not itself a Corporation Tax payer, like an ordinary offshore company. If the participants in such an LP or LLP are offshore companies that also lawfully pay no tax, for example two Marshall Islands offshore companies, then in practice no tax arises anywhere and the result is an offshore structure in England.
From 1 January 2026, a new permanent 40% first-year allowance applies to qualifying new and unused plant or machinery. It allows 40% of the cost of a qualifying asset to be deducted from profit before tax in the first period where the conditions are met.
For a company buying equipment, servers or other qualifying fixed assets, this is a useful 2026 change. Finance Act 2026 placed the relevant provision into legislation.
For a specific project, the tax position can be calculated separately, while the commercial UKLTD.UK website remains focused on the company itself, documents and bank accounts.
- UK Ltd annual accounts
- International contracts
- 40% first-year allowance from 1 January 2026
- Finance Act 2026
- Company accounts in the currencies of the main markets