A guide to registering a Non-resident company for Corporation Tax in the UK

Do you operate your company in the United Kingdom but the control and management don’t reside there? Then you must be in quite a quandary about your tax situation! Registering for Corporation Tax in Britain has its share of dos and don’ts and in this blog, we walk you through who, when and how to register a non-resident company for Corporation Tax in the United Kingdom (UK).

Should You Register? Yes, if:

You have disposed of land or property in the UK and any of the

Following apply:

You run a Non-resident company, not registered with UK Companies House

Your collective investment vehicle is deemed as a company (as long as not having been elected for transparent or exempt treatment).

Should You Re-register? Yes, if:

Your company has previously registered for UK Corporation Tax but has since been dormant for Corporation Tax purposes.

You are an agent or have recently appointed an agent, acting on behalf of the company.

Can You be Exempt? Yes, if:

The disposed property or land is an excluded disposal

No chargeable gain or allowable loss arises. Example, a disposal where there is no gain since, sales proceeds equals the acquisition cost.

The substantial shareholding exemptionapplies to a disposal.

The disposal happens to be a grant of a lease, for no premium.

There is no need to register unless there is a disposal of interest in UK land or property. So holding an asset does not bring a non-resident company within the ambit of charge to Corporation Tax.

When Should You Register?

Within 3 months of the date from when your company become chargeable to UK Corporation Tax. Your company becomes chargeable when you sell, give or otherwise transfer ownership of UK property or land. This date cannot be before 6 April 2019 or after the date of registration.

What Documents Will You Need?

Name of your company, its registered address and contact details. This address will be primary contact information stored and used by HMRC for any communication.

If you have had any previous companies, the names have to be furnished.

Date and country of incorporation, or the date of establishment, in case of collective investment vehicle (CIV).

Registration or date of incorporation your company.

Name, address and contact details of directors (or for a CIV, an authorized individual, to act on its behalf).

Date of disposal of interests in land or property in the UK.

Income Tax Self Assessment Unique Taxpayer Reference (UTR), if it is received

In case of a re-registration, a copy of the Corporation Tax UTR, from any previous correspondence with HMRC is to be furnished

How Can You Register?

If your company has a Government Gateway for Corporation, registering as a non-resident company the process is fairly simple and straightforward. Only the Government Gateway user ID and password used for previous registration is required.

If you have registered recently, it may take 6 to 8 weeks to receive codes. They would be received at the overseas registered office.

If you haven’t registered yet, a registration is required on the official government website.

Your Next Steps

Once Registered, HMRC will set up a record for your company, send you your UTR and other information by post. Using the Online Services of the HMRC, you can then log-in and file your returns.

While the initial steps of financial filing might seem manageable, the true complexity unfolds as you delve deeper. Completing a CT600 form and converting your accounts into the iXBRL format can be resource-intensive. This is the juncture where DataTracks can provide essential assistance. Our iXBRL Tagging services cover the entire lifecycle of your return filings, ensuring compliance and legal integrity. To explore how we can support your filing process, reach out to us at enquiry@datatracks.co.uk.

FAQs

1. What is a non-resident company in the context of UK Corporation Tax?

A non-resident company is one that operates in the UK but is controlled and managed from outside the UK. Such companies need to register for Corporation Tax if they dispose of UK land or property.

2. When does a non-resident company need to register for UK Corporation Tax?

A non-resident company must register within 3 months of becoming chargeable to UK Corporation Tax. This typically occurs when the company sells, gives away, or otherwise transfers ownership of UK property or land.

3. What are the main scenarios where a non-resident company should register for Corporation Tax in the UK?

You should register if:

Your company disposes of UK land or property.
Your collective investment vehicle is treated as a company and hasn’t elected for transparent or exempt treatment.

4. Are there situations where a non-resident company might be exempt from registering for Corporation Tax in the UK?

Yes, exemptions apply if:

The property or land disposal is an excluded disposal.
No chargeable gain or allowable loss arises from the disposal.
The substantial shareholding exemption applies.
The disposal involves a lease grant without a premium.

5. What documents are needed to register a non-resident company for UK Corporation Tax?

You will need:

The company’s name, registered address, and contact details.
Names of any previous companies.
Date and country of incorporation (or establishment for collective investment vehicles).
Details of directors or authorized individuals.
Date of disposal of interests in UK land or property.
Income Tax Self Assessment Unique Taxpayer Reference (UTR), if received.
Corporation Tax UTR from previous correspondence with HMRC, if re-registering.

6. How can I register my non-resident company for Corporation Tax in the UK?

You can register online through the Government Gateway. If you already have a Government Gateway user ID and password from a previous registration, you can use them. If you haven’t registered yet, you will need to create an account on the official government website.

7. How long does it take to receive registration codes from HMRC?

If you have registered recently, it may take 6 to 8 weeks to receive the necessary codes, which will be sent to your overseas registered office.

8. What happens after I register my non-resident company for Corporation Tax?

HMRC will set up a record for your company and send you your Unique Taxpayer Reference (UTR) and other information by post. You can then use HMRC’s Online Services to log in and file your returns.

9. What is the role of DataTracks in the registration and filing process?

DataTracks provides iXBRL Tagging services to help convert your accounts into the iXBRL format required for Corporation Tax returns. Our services cover the entire lifecycle of your return filings, ensuring compliance and legal integrity.

10. How can I get assistance from DataTracks for my filing process?

You can reach out to DataTracks at enquiry@datatracks.co.uk to explore how we can support your filing process and ensure compliance with UK Corporation Tax requirements.