Tax regime for non-UK resident companies with a property rental business

The government consulted on the taxation regime of non-UK resident companies with a property rental business in March 2017; our response to the consultation was published as ICAEW REP 67/17.

The consultation response and outcome were published on 1 December and the regime will be changed from income tax to corporation tax with effect from 6 April 2020. Draft legislation will be published in summer 2018 for technical consultation with the intention of legislating the change in Finance Bill 2018-19.

We commented in our response that there should be provision to ensure such companies do not move in and out of cash basis accounting which is the default from 6 April 2017 so perhaps such companies should opt out of the cash basis to save changes. Steps may also be required to ensure such companies do not yoyo in and out of having to comply with the making tax digital regime for income tax and then corporation tax.

Anonymous