As a corporate non-resident landlord owning property in the UK, it’s essential to understand and comply with various tax obligations to ensure seamless property management and adherence to UK laws. Below is an overview of the key tax responsibilities and how we can assist you in navigating them.
Since 6 April 2020, non-UK resident companies receiving income from UK property are subject to UK Corporation Tax on their rental profits. This change aligns non-resident companies with UK resident companies regarding tax treatment on property income.
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Our team can manage the entire process, from registration to filing and payment, ensuring full compliance with HMRC requirements.
Non-resident companies are liable for UK Corporation Tax on gains from the disposal of UK property. This includes both direct sales and certain indirect disposals, such as selling shares in a company that derives significant value from UK property.
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We offer comprehensive services to accurately compute gains, handle reporting obligations, and ensure timely payment, mitigating the risk of penalties.
ATED applies to companies owning UK residential property valued above a certain threshold. The tax is annual and is based on the property’s value.
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Our experts can assess your property’s ATED liability, assist in claiming applicable reliefs, and handle all filing and payment processes on your behalf.
The NRLS ensures that non-resident landlords pay the correct tax on UK rental income. Under this scheme, tax is typically deducted at source by tenants or letting agents unless an exemption is granted by HMRC.
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We can guide you through the NRLS application process, ensuring you receive rental income gross, and assist with ongoing tax reporting and compliance.
Navigating the UK’s tax landscape as a non-resident corporate landlord can be complex. Our dedicated team offers:
In-depth knowledge of UK tax laws pertaining to non-resident landlords.
From registration and filing to payment and compliance across all relevant taxes.
Tailored advice and solutions to fit your specific circumstances and objectives.
By partnering with us, you can ensure full compliance with UK tax obligations, allowing you to focus on maximising the returns from your property investments.
Corporate non-resident landlords are subject to UK Corporation Tax on rental income from UK properties. Additionally, they may be liable for Capital Gains Tax on profits from the sale of UK property and the Annual Tax on Enveloped Dwellings (ATED) if they own high-value residential properties.
Non-resident companies receiving UK property income must register for Corporation Tax with HMRC. This involves notifying HMRC of your company’s details and the commencement of your UK property business. It’s advisable to consult with a tax professional to ensure accurate and timely registration.
The NRLS is a scheme where UK rental income received by non-resident landlords has tax deducted at source by tenants or letting agents. However, non-resident landlords can apply to HMRC to receive rental income without tax deducted, allowing them to manage their tax affairs directly. Registration is recommended to avoid automatic tax deductions.
Yes, even if no tax is payable under ATED due to reliefs or exemptions, non-resident corporate landlords must still submit an annual ATED return to HMRC to claim the relief. Failure to file can result in penalties.
Gains from the disposal of UK property by non-resident companies are subject to UK Corporation Tax. It’s essential to report the disposal and pay any tax due within the specified timeframe to avoid interest and penalties.
Non-resident landlords should keep detailed records of all rental income received, expenses incurred, property purchases and sales, and any correspondence with HMRC. Maintaining accurate records ensures compliance and facilitates efficient tax reporting.
Yes, allowable expenses such as property maintenance, letting agent fees, and certain professional services can be deducted from your rental income when calculating taxable profits. Proper documentation of these expenses is crucial.
Corporation Tax Return (CT600): Typically due 12 months after the end of your accounting period.
Corporation Tax Payment: Due 9 months and 1 day after the end of your accounting period.
ATED Return: Due annually by 30 April for the forthcoming tax year.
Adhering to these deadlines is essential to avoid penalties and interest charges.
While not mandatory, appointing a UK-based tax agent can be beneficial. They can assist with registrations, filings, and ensure compliance with UK tax laws, providing peace of mind and allowing you to focus on your property investments.
For more detailed information or to discuss your specific needs, please contact our team directly.
Senior Manager
Head of Direct Taxes
Associate
Corporate Income Taxes, Personal Tax & VAT
