What taxes are relevant for non-resident property owners? What are the reporting requirements for non-resident investors? 

If you are the overseas owner of UK residential land and property, start here to work through your UK tax and legal requirements. This is a freeview signpost to our non-resident landlords and offshore investor tax guides which is aimed at corporate landlords.

What are your tax and other legal obligations in the UK?

1. On acquisition

  • Stamp Duty Land Tax (SDLT): payable on the purchase of UK property.
    • Payment of SDLT will generate form SDTL5 which is required to register the property with the Land Registry.
    • Companies pay a higher rate of SDLT than individuals.
  • Register as an Overseas Entity with an interest in UK land and property with Companies House, a requirement for corporate landlords and similar entities
  • File an Annual Tax On Enveloped Dwellings (ATED) return.
    •  When a residential property is bought by a company from a third party, you must file an ATED return by the end of the period of 30 days beginning with the date of acquisition or transaction.
  • Property owners will need to set up a Government Gateway account in order to file all the above returns, see New Company: tax registration checklist.

Company owners see detailed subscriber guide: Offshore company holding UK residential property: tax issues

2. Annual requirements

Reporting property profits: companies

Register for Corporation tax in order to report:

Completing a Corporation Tax return

Reporting accommodation benefits in kind

  • If you are the owner/director of the company and you reside in the property and pay less than market rent to your company, Accommodation benefits should be declared.
  • The company must register for PAYE, and Report taxable benefits and expenses, using form P11D.
  • The owner/director will need to declare any taxable accommodation benefits under Self Assessment.

Annual Tax On Enveloped Dwellings (ATED)

  • A company must file an ATED return annually and if no exemption applies, pay the ATED charge.
    • Typically this is paid if its property is occupied by a connected person.
    • ATED is payable annually in advance by 30 April and a return must also be filed by that date.

See also Non-resident directors: earnings, expenses and reporting requirements

3. On Disposal

4. Repatriation

If you decide to move to the UK or move the company to the UK, the following additional compliance will be required:

Companies House:

  • Filing statutory accounts.
  • Compliance statements.
  • Update to Persons of Significant Control (PSC) register.

See A new Company? Start here

 

Index of other guides on these topics

Article & Link

Description

Non-resident landlord scheme: At a glance

Our freeview guide gives a general overview of the non-resident landlord scheme.

Non-resident landlord scheme

A detailed guide for subscribers that explains the non-resident landlord scheme.

UK residential property and returning expats: To sell or not to sell?

When returning to the UK, expats face a number of issues when considering selling UK residential property. This case study illustrates some of them.

Offshore company holding UK residential property: Tax issues

Many individuals continue to hold UK property via offshore companies: is it worth selling up or transferring these assets to UK companies?

Non-resident CGT: UK property

The Capital Gains Tax regime is extended to include UK property owned by non-residents. This guide explains the rules.

What return do you use? see: How to report & pay CGT

Profits from dealing in or developing UK land

Anti-avoidance provisions which can catch dealing in or developing UK land and subject any profits to Income Tax.

Annual Tax on Enveloped Dwellings (ATED)

Residential property held by corporates may be subject to an annual tax charge under the ATED regime.


Transfer of assets abroad (ToA)

What are the ToA rules? When do they apply? Is there any defence against the rules?

UK Agent for registration of Overseas Entities

 How to verfy and process ROE

 


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