With news that HMRC is launching a campaign targeting non-compliance by offshore companies who own UK property, we are focusing on the tax compliance issues for offshore property owners, directors and landlords this week.

Offshore entities who hold UK land and property must now register their details with Companies House. A complication arises in that each entity must have its details ‘verified’ by a UK agent. This is not an easy process. Our new Agent guide to Registration takes entities and their UK agents through the entire registration process, step-by-step. If this all proves too much for you, or your client, and you would like assistance, our sister company, the Virtual Tax Partner service is a UK regulated agent for these purposes and can perform the necessary verification checks.

Do also have a read of our guide for non-resident UK property owners. It's in Editor's choice and takes you through the different complicance requirements in the UK. A really useful starter guide if you need to know more about this topic.

We have a new CPD webinar out this week, on tax treaties. The provisions of a tax treaty can override domestic law. This can sometimes produce some interesting results and you should always consider the effect of the tax treaty, as well as our Statutory Residence Test if you are completing the non-residence pages of the Self Assessment return.

Finally, just one case this week, involving a failed tax scheme using Enterprise Zones. This one dates back to 2011, however, it serves to show that buyers of these types of complicated tax schemes need to be very careful. Being a celebrity will not get you out of a bad scheme. 

More news, updates and cases below.

Back soon, 

Nichola Ross Martin FCA CTA (Fellow)
Tax Director


Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.

Quick News (Freeview)  

Campaign: Offshore companies owning UK Property
The CIOT say that HMRC are launching their new campaign to tackle non-compliance linked to offshore corporates owning UK property in November. It had been previously suggested that this would launch last month

OTS review of residential property income 
The Office of Tax Simplification (OTS) has published its report ‘Property income review: simplifying income tax for residential landlords’. This explores the common complexities, issues, and concerns facing individual taxpayers with property businesses.

HMRC Charter performance drops
HMRC has released its latest report showing how it has performed against the HMRC Charter during 2021. In all areas reviewed there have been no improvements since 2020.

Energy Price Guarantee announced for Northern Ireland 
The Government has announced the details of how the Energy Price Guarantee will work for Northern Ireland. The support given will be equivalent to that received by domestic use customers in Great Britain.

Editor's Pick  

A Non-Resident Owner of UK property? Start here 
FREEVIEW: 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.

Register of Overseas Entities: Agent Guide 
NEW: a 'walk through' the new rules with guidance and checklists for UK regulated agents and overseas entities.

Guides & Updates  

Directors & Companies

Non-resident directors: earnings, expenses and reporting requirements
Do non-resident directors have to complete a UK Self Assessment return? When and how is their remuneration taxable in the UK? What expenses can they claim?

Companies: Permanent establishment & residence
What are the rules for determining a company's country of residence? What is central management and control? When does a company create a permanent establishment in another country?

Land & property  

Annual Tax on Enveloped Dwellings (ATED)
UPDATE: What is the Annual Tax on Enveloped Dwellings (ATED)? Who does ATED apply to? What relief is available and how is it claimed? What are the ATED return filing dates?

Non-Resident Landlord Scheme
What is the Non-Resident Landlord scheme? How does it work? Who does it apply to? How can I apply to receive rent without a withholding tax deduction?


Laundry costs
UPDATE: Allowances for domiciliary care workers have been added to the list of deductions that employees can claim

Private Client & Estate Planning 

CGT: Rollover (Incorporation) Relief
UPDATE: Incorporation Relief is available to individuals. Gains from the disposal of business assets on incorporation can be deferred. What assets are included? How does the relief work?

CGT: Rollover Relief
UPDATE: What is Rollover Relief? When a capital gain is made on the disposal of a business asset, it is possible to defer the gain by rolling it over against the cost of acquiring a replacement business asset. What are the conditions for the relief? What is a business asset? 

Negligible value claims
UPDATE: What is a negligible value claim? When and how can a claim be made?

Tax Cases (Freeview) 

CoA: Celebrity Enterprise Zone expenditure out of time
In Cobalt Data Centre 2 & 3 LLP v HMRC [2022]EWCA Civ 1422 , the Court of Appeal (CoA) adjudged contract amendments meant expenditure was not made under an original 'Golden Contract'.  The expenditure was not therefore in time to qualify for relief under the Enterprise Zone scheme.

VAT Cases & Guides 

Online Marketplaces: Selling goods in the UK
When do you have to register for UK VAT? When is UK VAT payable? What amount is VAT payable on? What information do you have to give the marketplace provider? What will it do with that information?

Tax Tools 

Tax Tools
Be a winner with our game-changing tax diagnostics tools for Business Asset Disposal Relief, SDLT & annexes/subsidiary properties, Company reorganisations, R & D Zone and TAAR on winding up. Sign up now!

Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax significant events. 

Tax Queries?

UK Agent for registration of Overseas Entities
Announcing the launch of a new service to provide assistance in registration and verification an overseas entity that owns UK land or property?

Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a very wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more. 

CPD for lunch 

Byte-sized chunks of CPD for subscribers

Missed last time's Web-update?

Nichola's SME Tax W-update 27 October 2022

  • Autumn Statement scheduled for 17 November 2022
  • Paper tax returns due by 31 October
  • Statistics reveal a reduction in private landlords
  • New Landlord? Start here
  • Making Tax Digital: Survival guide (for the self-employed & landlords)
  • Family Investment Companies
  • Partnerships: How to prepare partnership and partners tax returns
  • Partnership agreements: What should be considered?
  • Joint property: legal v beneficial ownership
  • Termination, redundancy and leaving payments
  • Foreign and residency pages: FAQs
  • CGT: Death
  • SDLT: Right of way did not change nature of residential property
  • EBT contributions not recoverable from director during liquidation
  • Registering for VAT ...More 

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