Key Implications for Non-UK Resident Companies with UK Property Business

From 6 April 2020, non-UK resident companies that carry on a UK property business, or have other UK property income, will now be liable to corporation tax on their profits, as opposed to falling within the charge to income tax.

Broadly, the profits chargeable to corporation tax will be calculated on the same basis as income tax. However, there are certain specific rules and restrictions under corporation tax that will need to be considered by affected companies and their advisors.

This briefing note is intended to provide an overview of both the technical and practical aspects of transitioning to, and operating within, the corporation tax regime. Albeit, every company will have a different set of circumstances which will require specific detailed consideration and advice. To explore this further, please speak to your regular FTI Consulting contact, or contact the team using the details below.

Our industry-focused team has extensive experience in advising on all aspects of the real estate ownership cycle, from acquisitions to disposals, joint ventures through to compliance and transfer pricing. The team thrives on complexity, advising on high value cross border transactions, and acts as a hub on European investments.

Property transactions often involve specific and potentially complex tax considerations. Whether you are an investor, developer or occupier, FTI Consulting offers a broad range of services – combining tax, surveying and accounting – that delivers practical and innovative solutions for clients involved in significant capital transactions.