UK tax compliance to get more complicated for some Non-Resident Companies

Published 25th September 2018; Updated 15th November 2018 / April 2021

The content of this newsletter applies to non-UK Companies holding UK investment property and which derive most or all of their UK income from the property.

With effect from April 2020 all non-resident UK property rich Companies have been subject to the full UK Corporation Tax regime instead of the previous simplified income tax regime. The note from HMRC reads as follows:

The accounts and balance sheet as prepared under the company’s jurisdictional statute or constitution will be required. If the taxonomy is non-UK or non-US GAAP e.g. Swiss/French/Lux/BVI then accounts are to be sent in as an untagged PDF but the computations will require iXBRL tagging. Where no formal accounts are required under the home jurisdiction, a set of management accounts with P&L and balance sheet should be filed.

iXBRL tagging is a hidden tag applied to key entries in a submitted document that indicates to the HMRC software for entry validation.

If you want to know how to file  a UK Corporation Tax Return for your non-UK company and what documents must be filed with the Return please contact us.