If you are a non-UK resident who owns UK property, this breaking news is of relevance to you.
(2 minute read)
HMRC are launching a new campaign to tackle tax avoidance, which particularly affects offshore corporates who own UK property.
HMRC have told the CIOT (Chartered Institute of Taxation) that non-resident corporate owners of UK property may not have met certain UK tax obligations. The campaign will be launched this month to apply tax rules on relevant transactions.
Offshore owners and companies need to get their affairs in order to avoid penalties that incur due to…
- Errors in a return or document.
- Failure to notify liability or chargeability to tax.
- Failure to make a return on time.
To monitor this, HMRC will send one of two letters which apply to the following:
According Transfer of Assets Abroad (ToAA), legislation, UK-residents who have any interest in the income or capital of a non-resident landlord, whether directly or indirectly, are under provision.
A UK resident who has not personally transferred assets but benefits from a transfer made by somebody else may also be within the ToAA provision.
Non-resident companies that have disposed of UK residential property between 6 April 2015 and 5 April 2016, without filing Non-Residential Capital Gains Tax (NRCGT).
Corporations and individuals are advised to seek professional advice to make sure their taxes are in order.
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Kind regards Ilyas