UK Tax Obligations – HMRC Campaign

Offshore Companies Owning UK Property

This month, HMRC is launching a new campaign to tackle non-compliance linked to offshore companies owning UK property. They discuss the UK tax obligations some offshore companies may not have met.

Having examined data at Land Registry, HMRC believes that some offshore companies may not have met certain UK tax obligations.

HMRC may issue enquiry letters together with a request to complete a Certificate of Tax Position.

Offshore companies are potentially liable to tax on:

• Rental income received
• Annual Tax on Enveloped Dwellings (ATED)
• Capital gains on disposal of UK property

Many companies may be exempt from ATED as the property is rented out, but ATED Returns must still be filed and there are significant penalties for late returns.

If you need any help with these issues please get in touch.