This news item was updated on Monday 20 January 2020 at 11:11am.
Non-resident landlords that are companies will start paying corporation tax rather than income tax on their profits from 6 April 2020. HMRC has released new guidance concerning this change.
Key points to note from the guidance are that:
Further detail on many of these issues is available to Tax Faculty members in an article by Andy Tall in the November issue of TAXline.
HMRC’s guidance does not apply to those companies that:
The guidance also states that non-resident companies will not have to register for corporation tax and file a company tax return for an accounting period if the liability to corporation tax is fully offset by tax deducted under the non-resident landlord scheme and it has no chargeable gains for the period.