Changes affecting non-resident landlord companies

Corporation Tax

From 6th April 2020
For the 2020/21 tax year and onwards, Non-resident landlord companies must report their UK income by way of a CT600 return under the corporation tax system. The major difference to the old system is that accounts will need to be prepared as well as a corporation tax return (CT600), the return and accounts will need to be filed electronically using a commercial iXBRL filing software system. Unfortunately, HMRC does not provide a free HMRC corporation tax filing software.

If the rental income commenced on or after 6th April 2020 then companies will no longer be able to register under the NRL scheme and will have to register directly for corporation tax using the following link  Register For Corporation Tax

Filing the CT600 tax return and tax payment dates

The CT600 must be filed online one year after the year end date.

Under the corporation tax system, any tax liability that is due to HMRC must be paid nine months and one day after the year end date.

For example, if the year-end date is 5th April 2022, the CT600 filing deadline would be 5th April 2023 any tax liability would be due to HMRC on the 6th January 2023.

Corporation tax rates

Corporation tax is charged at 19%. From 1st April 2023, the Government has proposed that corporation tax will be charged at 19% on the first £50,000 of profits, 26.5% on the next £200,000 of profits and 25% on any profits in excess of £250,000. If you (or a number of you) control more than one company then the bands are divided equally among the associated companies.

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