First published 25th September 2018; Updated 15th November 2018
At present all non-resident companies whose income is solely income from property complete a simple income tax return showing only the income and expenditure relevant to the UK property business. We do not need a Balance Sheet nor do we require a full Profit and Loss Account. The requirements of the UK companies Acts as regards presentation of accounts simply do not apply.
With effect from April 2020 all non-resident companies will be subject to the full UK Corporation Tax regime instead of the 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.
We don’t yet have all the details but it will mean a substantial increase in the cost of compliance. As soon as we get more information we will publish it here.
The newsletters on this website are believed correct at the time of publication. They may not include subsequent changes in the law. If the subject matter is of interest you should contact us to see if there is a relevant update.
Taxation is a complicated subject and is subject to change. This article is provided for general guidance only. You should only rely on advice prepared specifically for you. Neither the writer nor Landlords Tax Services Ltd can be held liable for any loss arising from any act or omission by you as a result of your understanding of this article.
Landlords Tax Services Ltd, specialises in the taxation of residential property income and gains and around half its clients are resident outside the UK. If you would like specialist help contact Maurice Patry F.C.A. at firstname.lastname@example.org or for more information visit our website at Landlords Tax Services Ltd
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. All Rights Reserved - In an article such as the one on this page we can only give brief general guidance and cannot cover all situations. This guidance may not cover all your personal circumstances and so you should not rely on it. Before taking action or not, always do your own specific research and seek appropriate professional advice which takes into account your personal circumstances, with the full facts of the case and all documents to hand. Neither Maurice Patry F.C.A. nor Landlords Tax Services Ltd can be held responsible for the consequences of any action or the consequences of deciding not to act.