UK tax filing for non-resident companies

Who is affected? 

Non-UK resident companies that do not have a permanent establishment (PE) or branch in the UK but are subject to UK tax because they:

  • are engaged in a UK property rental business;
  • have profits of a trade of dealing in or developing UK land; and
  • are non-UK resident companies or collective investment vehicles (CIVs) deemed as companies to the extent they have not filed a tax transparency/exemption election and dispose of an interest (direct or indirect) in UK property or land and any gain arising the disposal is not covered by an exemption, e.g. substantial shareholding exemption/non gain or no loss transfer.

Non-UK resident companies that simply hold a UK property (whether let or unlet) as an investment and have no other UK income (including UK property rental income) will have a one-day accounting period covering the date of the disposal (e.g. in case of an indirect disposal of shares/units deriving 75% or more of their value from UK property/land). Any subsequent disposals will then require further one day accounting period returns. iXBRL tagging is required for these submissions, but accounts do not need to be attached.

For a CIV or a company that has or expects to have 4 or more disposals in a financial year, by concession, there will be a 12-month accounting period.

What needs to be submitted?

All documents to be filed online:

  • Full return – CT600 and supporting computations in iXBRL. 
  • Accounts for the accounting period:
    • In iXBRL if they are prepared using an accounting standard that is supported by an iXBRL taxonomy that is accepted by HMRC. Currently this is EU adopted IFRS, UK GAAP (FRS101, FRS102 and FRS105) and US GAAP.
    • If the accounts are prepared to an accounting standard not supported by HMRC, they do not have to be filed in iXBRL but must be submitted as a PDF attachment to the online return.
    • If the accounts are not prepared in English, a translation of the accounts (and balance sheet if applicable) in English will be required.
  • Other documents e.g. Corporate Interest Restrictions return (where relevant).

Due dates

  Due date
Notify HMRC of chargeability to tax
  • Within 3 months from the date of the disposal if no rental income or other income chargeable to UK tax.
  • Within 3 months from commencement of UK property business.
Returns and accounts Within 12 months after the end of the accounting period.

Payment deadlines

Payment Due date
One day accounting period (i.e. single asset disposal) 3 months and 14 days after the end of the one day accounting period
Transitional arrangements for non-resident companies with property rental business (move to corporation tax regime from 6 April 2020) 9 months and 1 day after the end of the accounting period
Taxable profits of up to £1.5m (assumes a 12 month accounting period) 9 months and 1 day after the end of the accounting period
Taxable profits of more than £1.5m but less than £20m (i.e. ‘large company’) unless:
  • tax liability less than £10,000; or
  • profits less than £10m and either:
    • first year; or
    • not ‘large’ in the previous accounting period.
Assuming company has a 12 month accounting period, in 4 separate instalments:
  • 6 months and 13 days after the first day of the accounting period
  • 3 months after the first instalment
  • 3 months after the second instalment (14 days after the last day of the accounting period)
  • 3 months and 14 days after the last day of the accounting period
Taxable profits of more than £20m (‘very large company’) Assuming company has a 12 month accounting period, in 4 separate instalments:
  • 2 months and 13 days after the first day of the accounting period
  • 3 months after the first instalment
  • 3 months after the second instalment
  • 3 months after the third instalment

How we can help

  • Assisting with the notification to HMRC on chargeability to corporation tax. 
  • Preparation and submission of the full return to HMRC.

Please contact Irfan Butt or Adrian Benosiglio for more information.