HMRC Admin 19 Response

Hi,

From a Corporation Tax perspective if the UK Ltd company is active and there is nothing going through the company then we can note it as dormant, usually for periods up to 5 years. This would mean we would not need annual returns submitted, however you may still need to submit dormant accounts to Companies House, you would need to check this with them,

You need to tell us that the company is not trading and we can update the records. However, you would have to notify us within three months of any trading commencing.

Thank you.

Hi,

If there is no income going through the company it can still be retained or set up, if not already done, to protect the name, and dormancy would be retained. There would be no need to file annual returns for Corporation Tax but annual submissons would still be needed by Companies House and you will need to refer to them regarding this.

You would be expected to inform Corporation Tax within 3 months of any trading occuring so that we can update the records.

If donations or any income go through the company then dormancy could be affected but specifics would be needed to establish the correct position.

With regards to sole trader, company name, there is no difference and the same name can be used. outside of the UK you would need to check that countries companies register to ensure no other company is using that name.

With regards to the company name being the same as the service provided, again as long as there is not another company already using that name it will be fine.

You can see information on company residence here:

INTM120200 - Company residence: Statement of Practice 1/90

As previously stated we would strongly suggest you speak to an accountant.

Thank you.

Hi,

If there is no income going through the company it can still be retained or set up, if not already done, to protect the name, and dormancy would be retained. There would be no need to file annual returns for Corporation Tax but annual submissons would still be needed by Companies House and you will need to refer to them regarding this.

You would be expected to inform Corporation Tax within 3 months of any trading occuring so that we can update the records.

If donations or any income go through the company then dormancy could be affected but specifics would be needed to establish the correct position.

With regards to sole trader, company name, there is no difference and the same name can be used. outside of the UK you would need to check that countries companies register to ensure no other company is using that name.

With regards to the company name being the same as the service provided, again as long as there is not another company already using that name it will be fine.

You can see information on company residence here:

INTM120200 - Company residence: Statement of Practice 1/90

As previously stated we would strongly suggest you speak to an accountant.

Thank you.

Hi,

If there is no income going through the company it can still be retained or set up, if not already done, to protect the name, and dormancy would be retained. There would be no need to file annual returns for Corporation Tax but annual submissons would still be needed by Companies House and you will need to refer to them regarding this.

You would be expected to inform Corporation Tax within 3 months of any trading occuring so that we can update the records.

If donations or any income go through the company then dormancy could be affected but specifics would be needed to establish the correct position.

With regards to sole trader, company name, there is no difference and the same name can be used. outside of the UK you would need to check that countries companies register to ensure no other company is using that name.

With regards to the company name being the same as the service provided, again as long as there is not another company already using that name it will be fine.

You can see information on company residence here:

INTM120200 - Company residence: Statement of Practice 1/90

As previously stated we would strongly suggest you speak to an accountant.

Thank you.

Hi,

There is no definitive answer to this as we would need to know the specifics of where money is generated from or received from and then what happens to that money. Generally donations would not be taxable where they are given for a specific reason and then utilised for that reason.

We would suggest that you speak to a financial advisor or write to us with the details so that we can provide a more specific response.

Corporation Tax: general enquiries

Thank you.

Hi,

The dates you should have entered when starting the form originally were 18 June 2021 to 30 June2022. This would then have generated the two forms, one for the 12 month accounting period and the other for the shorter period.

To rectify the position the quickest way is to go back in and try and do the missing period, when you have the error message you need to scroll to the bottom and press the help button, you can then put in your issue and if you put a telephone number in the box someone will ring you to help you rectify the position.

The help button goes to a dedicated team and you should have a response within 2 to 3 days.

Thank you.

Hi,

There is no tax liability in the UK so no double taxation relief  can be claimed.

The dividends would go into the accounts as a net figure and then an adjustment would need to be made for the same amount so that it does not get taxed in the computations, as they are exempt. You can see guidance here:

CTM02060 - Corporation Tax: computation of income: dividends and other distributions received

You can see the Netherlands tax treaty here:

Netherlands: tax treaties

Thank you.
 

Hi,

PIM 2510 states that if the property business only consisted of letting a single house, it would cease when the tenant left and the customer began to use the house as a private residence or, alternatively, when they decided the house would not be re-let.

If the house is put up for sale the intention is not to continue the rental business and related expediture, council tax, domestic bills, would not be allowable against the letting income up to cessation. A property could be up for sale for a considerable time and HMRC would not subsidise the related expenses.

Thank you.

Hi,

Your understanding of the overall position is correct, as confirmed in the following guidance:  

VCM20020 - EIS: disposal relief: CGT exemption

The guidance states "The investor may not be able to obtain Income Tax relief because their total income is too low or their income tax liability is reduced to nil by other reliefs. If the investor does not obtain any Income Tax relief on a subscription for shares in an EIS company there is no CGT exemption for those shares. CGT exemption is available if some Income Tax relief is given even though the effect of the claim is to reduce the investor’s Income Tax liability to nil"

The following guidance and associated links provide further information:

VCM20040 - EIS: disposal relief: Income Tax relief restricted
 
You can also see more information here: 

VCM14120 - Venture Capital Schemes: the Enterprise Investment Scheme: income tax relief: company procedures: attribution of EIS relief to shares

which states "Normally the amount of Income Tax relief attributable to a holding of shares will be self-evident. Where, however, the maximum amount on which relief is available for a year (see VCM10530) is exceeded, the position is not clear. In this situation the total relief obtained for the year is apportioned between all the holdings of shares for which relief was claimed, or the individual can choose to claim relief on some shares and not on others"

Thank you.