International Tax
Form 5471, Form 5472, Form 8858, Form 8865
US reporting for owners of UK companies and partnerships, and for UK groups with US entities, including Forms 5471, 8858, 8865 and 5472.
What does International Tax involve?
A US person who owns a UK company, or a UK company that owns a US one, takes on US reporting that sits beside the tax return and carries its own penalties. We deal with the information returns, the anti-deferral rules behind them, and the way both interact with UK corporation tax.
Forms and filings involved
- Form 5471
The information return a US citizen or green card holder files for a UK limited company they own, control or have acquired an interest in.
- Form 5472
Reporting for US corporations with a significant foreign owner, and for single-member US LLCs owned by someone outside the US.
- Form 8858
The information return for a foreign entity the IRS disregards, or a foreign branch, such as a UK operation of a US business.
- Form 8865
The information return for US persons with interests in a foreign partnership, including many UK partnerships and some UK LLPs.
- Form W-8BEN-E
The certificate a non-US entity gives a US payer to confirm its foreign status, FATCA classification and any treaty claim.
Owning a company on the other side
A US shareholder who owns or controls a UK limited company generally files Form 5471 with their return.
The form has several filing categories, each with its own schedules, and the initial penalty for missing it is $10,000 per form per year. A UK entity that has elected to be disregarded is reported on Form 8858 instead, and an interest in a UK partnership or LLP may require Form 8865. Which form applies turns on the entity's US classification, which is not always what its UK legal form suggests.
Owning a controlled foreign corporation also brings in the net CFC tested income rules, formerly known as GILTI, which can tax a US shareholder on company profits that have not been distributed. The regime was amended by 2025 legislation with effect for tax years beginning after 31 December 2025, so earlier workings cannot simply be rolled forward. UK corporation tax is charged at 25%, or 19% on small profits. For individual shareholders, a section 962 election and the high-tax exception are options to review each year.
In the other direction, a US corporation that is at least one quarter foreign-owned, or a foreign-owned US disregarded entity, reports transactions with its foreign related parties on Form 5472. The penalty is $25,000 per form per year. UK companies receiving US-source payments certify their status and any treaty claim on Form W-8BEN-E, which requires a view on the treaty's limitation on benefits article. We prepare these with the UK company's accounts in front of us so that related-party figures match.
Entity reporting we prepare
- 01
- Form 5471 by filing category, with the schedules each category requires
- 02
- Form 8858 for disregarded UK entities and foreign branches
- 03
- Form 8865 for interests in UK partnerships and LLPs
- 04
- Form 5472 for foreign-owned US corporations and disregarded entities
- 05
- Annual review of section 962 and high-tax exception options
Who this is for
US citizens who are directors and shareholders of a UK limited company
- UK founders with a Delaware corporation or a US LLC
- US persons who are members of a UK LLP
- Families holding investments through non-US companies
Why US UK Tax Returns
Each return is prepared with the other country's return open beside it, so a credit, election or disclosure on one is supported by the other.
One File
US and UK returns prepared in the same engagement and reconciled line by line.
Primary Sources
Every position traced to the Code, the treaty, IRS instructions or HMRC guidance.
Scope First
Returns, forms, years and fee agreed in writing before work begins.
The Same People
The team that files this year carries the elections and credits into the next.
Questions we are asked
I own a small UK limited company. Does the IRS really need to know about it?
Generally yes. A US person with a significant shareholding in, or control of, a foreign corporation files Form 5471 with their tax return, whatever the company's size or profit. The initial penalty is $10,000 per form per year, and a missing form keeps the statute of limitations open. The filing category, and so the work involved, depends on your shareholding and on whether the company is a controlled foreign corporation.
Can my company's undistributed profits be taxed on my personal US return?
They can. Where the company is a controlled foreign corporation, the subpart F and net CFC tested income rules can attribute profits to US shareholders before any dividend is paid. For an individual the default result is often poor, because corporate-level reliefs are not available without an election. A section 962 election and the high-tax exception are options to review. The outcome depends on the company's income and the UK tax it pays.
My UK company has a US subsidiary. What does the subsidiary have to file?
A US corporation files its own federal return, and where it is foreign-owned it also reports transactions with the UK parent and other foreign related parties on Form 5472. The penalty for a missing or incomplete form is $25,000 per year. Payments up to the parent, such as dividends, interest or royalties, need a Form W-8BEN-E on file. State filings depend on where the subsidiary operates.
Primary sources
What this page says is drawn from the official material below. Read it yourself; we would rather be checked than trusted.
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