[World Tax News] UK Issues Guidelines for Non-UK Residents and Non-UK Companies for Corporate Tax Registration and More

Editorial Team – [2024] 166 taxmann.com 678 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.

1. UK issues guidelines for non-UK residents and non-UK Cos for corporate tax registration

On 17 September 2024, UK HM Revenue & Customs (HMRC) published guidelines for corporate tax registrations for non-UK residents or non-UK incorporated companies. These guidelines prescribe the companies that require registration, the time limit under which such registration must be obtained, the information required to get the registration, and the procedure.

(a) Register for Corporation Tax through a dependent agent permanent establishment

The guidance provides for the registration of a non-UK resident company with HMRC for Corporation Tax if the company:

• has no physical establishment in the UK
• is trading in the UK through a dependent agent permanent establishment

A dependent agent is an agent who does business in the UK on behalf of a non-UK resident company. This excludes anyone acting for the company as an agent of independent status. Such a company must register within three months of the date it becomes liable for UK Corporation Tax.

(b) Register a non-resident company who disposed of UK property or land for Corporation Tax

The guidance prescribes for registration if the company dispose of UK property or land and any of the following apply:

• It is a non-UK resident company and not registered with Companies House
• It was previously registered for UK Corporation Tax and the company is currently dormant for Corporation Tax purposes
• It is a collective investment vehicle (CIV) regarded as a company and have not made either a transparency election or exempt treatment election

The registration must be obtained within 3 months of the company becoming liable to UK Corporation Tax.

(c) Register a non-UK incorporated company for Corporation Tax if you’re a UK resident

A non-UK incorporated company that is UK resident should register for UK Corporation Tax. A non-UK incorporated company is resident in the UK for UK Corporation Tax purposes if its central management and control is in the UK, unless it is also resident in a territory which the UK has a double taxation arrangement (DTA) with and that DTA awards sole residence to that other territory.

The registration must be obtained within 3 months of the company becoming liable to UK Corporation Tax.

(d) Register an offshore property developer for Corporation Tax

A non-UK resident company dealing in or developing UK land should register for UK Corporation Tax. Dealing in or developing UK land is where property or land is acquired or developed to profit from disposal. This is different from where property is acquired to hold as an investment, such as rental income.

Registration is required if any of the following apply:

• The company carries on a trade of dealing in or developing UK land
• The company holds the UK land as trading stock
• The main purpose of acquiring or developing the UK land was to realise a profit from disposing of the land

Source: Guidance on Register for Corporation Tax through a dependent agent permanent establishment
Guidance on Register a non-resident company who disposed of UK property or land for Corporation Tax
Guidance on Register a non-UK incorporated company for Corporation Tax if you’re a UK resident
Guidance on Register an offshore property developer for Corporation Tax

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