Advice on tax implications in the United Kingdom and Ukraine

Advice on tax implications in the United Kingdom and Ukraine

More and more entrepreneurs from Ukraine are choosing the United Kingdom as a jurisdiction for doing business or investing. However, there are significant differences between the tax systems of the two countries. If you are a resident of Ukraine but have registered a company in the UK (LTD, LLP) or receive income from British sources, it is important to consider the tax implications in the UK and Ukraine.

Consultant's lawyers provide comprehensive advice on issues such as tax residency, double taxation, CFC, reporting and interactions with the tax authorities of both countries.

What tax issues need to be considered

Many clients are unaware that even an accidental mistake in determining residency or tax obligations can lead to double taxation, fines or account freezing. That is why it is important to assess all tax risks in advance and optimise your business or investment model.

The most common aspects analysed during the consultation:

• Determination of tax residency in the UK and/or Ukraine.
• Application of the Convention between the UK and Ukraine for the avoidance of double taxation.
• Taxation of income of individuals and legal entities, including dividends, salaries, and consulting fees.
• Explanation of how CFCs (controlled foreign companies) work in Ukraine.
• Submission of reports to HMRC and the State Tax Service of Ukraine (tax returns, CFC reports, etc.).

Proper structuring allows you to optimise your tax burden and avoid unforeseen expenses.

What information do we analyse during a consultation on tax implications?

Before giving any recommendations, we do a deep audit of the client's financial and legal situation. This approach not only helps us avoid legal mistakes but also lets us develop the most effective and legal tax model tailored to your goals — whether it's scaling your business, investing, or moving abroad. We also take into account changes in legislation that affect your status in two countries simultaneously.

The following key factors are assessed:

1. The presence of income in the United Kingdom, Ukraine or other countries — its source, type (active/passive), regularity.
2. The structure of companies in which you are a beneficiary or director — including foreign holding companies, trusts, partnerships.
3. Tax status of an individual: place of residence, number of days spent there, centre of vital interests, presence of family or property.
4. Sources of income: salary, consulting, dividends, royalties, investments, cryptocurrency, intellectual property income.
5. Possibilities for using the Convention on the Avoidance of Double Taxation, transferring the tax burden or minimising losses through legal mechanisms.

We also check whether you are subject to the requirements of Ukraine's CFC legislation and whether you need to file tax returns in both countries.

After the analysis, you will receive step-by-step instructions explaining what actions to take, when and where to submit documents to avoid penalties, additional charges or double taxation.

Advantages of tax consulting from Consultant

 In-depth knowledge of international tax law — we explain how the laws work in the UK + Ukraine context.

Individual analysis of each case — taking into account the types of income, company structure and residency.

Current CFC and currency control practices — we prevent fines and unexpected blockages.

Professional dialogue with tax authorities — we help you avoid disputes and additional charges.

Frequently asked questions about tax implications in the UK and Ukraine