Case records:New company records:Offshore property developers
Offshore property developers
Before Budget 2016, a non- resident company was chargeable to UK Corporation Tax only where the profits were attributable to a UK Permanent Establishment. Budget 2016 changed the relevant legislation so that non-resident corporates and non-resident companies are now within the charge to Corporation Tax on the full profit from carrying on a trade of dealing in or developing UK land.
Such companies do not have to incorporate at Companies House.
You may therefore be approached by a company that has profits that are now chargeable to Corporation Tax, asking for a record to be set up so they may submit returns.
You should do that by:
- using the company status ‘O’ as the company will not have a Company Registration Number
- using the date on which the company came within the charge to Corporation Tax as the date of incorporation
- not making the APs dormant or exempt so COTAX will issue notices to deliver a return at appropriate intervals.
BIM60515 onwards has more information.