Carousel_Arrow Chat icon_cookie IHT_trust_wills IR35 Combined Shape 2 Group 10 Login Mobile Menu Share Share Email SubMenuMobile Group 9 VAT View_Gallery View_List capital_allow Triangle 2 Copy Close construction cyberpro employment_tax_shares emplyer_solutions entrepreneurs_corps fee_protect Group 7 grant_fund Group i_Clock i_Consult i_Done i_Eligibility_Tick i_Enter i_Filter i_HMRC i_Negative i_Play i_Plus i_Reset i_Support_Legal i_Support_TaxDesk i_Support_VAT i_Tick noun_marketing_1872083 noun_online_2126759 i_download i_meet Group Copy 24 Group 18 noun_electrical_1240755 copy noun_Technology_2125422 noun_Science_2031115 i_tick_bullet_block international_tax patent_box private_client property_sdlt r_and_d reliefs_incentives Search specialist_tax status tax_indemnity valuation YouTube
Markel Tax

22 Nov 2017

Autumn Budget 2017: Non-resident companies to pay corporation tax from April 2020 on UK rental income

Currently, non-resident companies are subject to income tax, at the basic rate, on their UK rental income. In March 2017, HMRC published a consultation looking at bringing such companies within the scope of corporation tax and non-resident CGT.

As well as the announcements in the Autumn Budget relating to the capital gains for UK property (see separate analysis), HMRC have confirmed that it is intended to bring the rental income from such non-resident companies within the scope of corporation tax, from April 2020. Further details regarding the mechanics of this change will be published shortly after the Budget.

This will affect all non-resident companies who own UK property from April 2020. It is also likely that, by falling within the scope of corporation tax, all of the provisions that apply to UK companies will also be applied to these companies – in particular the new complex corporate interest restrictions rules will need to be compiled with.

Tagged HMRC
Next article in series

22 Nov 2017

Autumn Budget 2017: Master trust tax registration