How do double tax treaties give relief for a UK company?

Most UK treaty relief works by credit: foreign tax paid on income also taxed in the UK is credited against the UK corporation tax due on that same income, capped at the UK tax otherwise payable on it, so relief cannot create a refund of UK tax on other profits.

Some treaties or specific reliefs use exemption instead, removing certain foreign income from the UK charge entirely, such as the optional foreign permanent establishment exemption election available to UK companies with overseas branches.

Relief only works as well as the paperwork behind it: you need evidence of foreign tax actually paid, correct treaty residence certificates, and returns filed correctly in both jurisdictions, or a claim can be delayed or refused.

Without a treaty at all, the UK still gives unilateral relief for foreign tax under domestic law in most cases, though it is often less generous than a negotiated treaty position.

Our fixed monthly packages for a UK limited company start at £89 plus VAT and run to £169 and £289 plus VAT as bookkeeping, VAT, payroll and reporting are added. One-off filings are sold at fixed prices, and the Companies House fees we pay for you are charged at cost with no VAT added. Overseas owners are quoted on exactly the same published prices as UK-resident clients.

Rates, thresholds and deadlines here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.