HMRC new guide for the non-UK resident...

From 6 April 2020, Non-UK resident companies including those who invest in UK property through collective investment vehicles will pay Corporation Tax instead of Income Tax on profits from UK property.

This will not apply to you if you:

– Have tax deducted under the Non-resident Landlord Scheme and are not required to file a tax return

– Start a UK property business on or after 6 April 2020

– File an income tax return that is not a Non-resident Company Income Tax Return (SA700)

A Non-resident company will not be required to register for Corporation Tax and file a Company Tax Return for an accounting period if:

– Its liability to Corporation Tax is fully offset by tax deducted under the Non-resident Landlord Scheme

– It has no chargeable gains for that period

If your property is suitable for residential use, you may also have to pay Annual Tax on Enveloped Dwellings (ATED). Find out more about your separate filing and payment obligations for ATED.

What you’ll need

You will be automatically registered for Corporation Tax and will be sent a Company Unique Taxpayer Reference (UTR). You should contact HMRC if you have not received your UTR by 30 June 2020 or you already have a Company UTR.

You will also have to register with HMRC Online Services to file your Company Tax Return online.

You will need suitable software to prepare and submit your Company Tax Return to HMRC online. You cannot use HMRC free filing service to file your tax return.

You do not need to register with Companies House unless you have a permanent establishment in the UK.

You will need to calculate profits on which Corporation Tax is due using Corporation Tax rules and transitional rules.

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