From April 6 2020, non-UK resident companies that carry on a UK property business, or have other UK property income, will be charged to Corporation Tax, rather than being charged to Income Tax as at present. This change aligns with the end of the tax year 2019-20 which ends on 5 April 2020.
HMRC will write to existing non-resident company landlords in February 2020 to tell them their unique Corporation Tax reference number in readiness for April 2020.
HMRC will also advise these customers to register for HMRC Services to enable them to file their Company Tax Returns and pay their Corporation Tax when due.
The first Corporation Tax accounting period for non-resident company landlords will start from 6 April 2020 and end on the earlier of the company’s own accounting year end or 5 April 2021.
Subsequent Corporation Tax accounting periods will follow the accounting period of the company subject to a maximum length of 12 months.
Customers will be sent a notice to file online a Company Tax return shortly after the end of their first Corporation Tax accounting period.
Customers will still need to complete their manual SA700 (Non-resident Company Income Tax return) for the tax year ending on 5 April 2020.
Where a non-resident company landlord has additional sources of income chargeable to Income Tax (other than property rental and Furnished Holiday Letting income), it will still need to complete a SA700 (Non-resident Company Income Tax return) for this type of income.
A new 64-8 is required as there is a change from Income Tax to Corporation Tax. This will allow agents to continue to represent their clients in dealing with their tax affairs. The 64-8 can be completed online and is also available in paper format.
Further guidance is available at: