Here is a brief summary of the measures in the March 2020 Budget
which are relevant to the Real Estate sector.
Non-UK resident companies with UK property
income – As previously announced, non-UK resident
companies that carry on a UK property business, or have other UK
property income, will be charged to Corporation Tax on UK property
business profits or income from 6 April 2020 rather than being
charged to Income Tax as at present. If such non-UK companies are
not registered under the non-resident landlord scheme (to receive
rental income without deduction of UK tax) and the tax deducted (at
20%) from the rental income will not meet their tax liability (for
example, the company has interest expense on shareholder loans that
would be disallowed for corporation tax purposes), there will now
be an obligation on such non-UK resident companies to notify HMRC
of their liability to corporation tax from 6 April 2020.
