Non-UK companies with UK rental profits “wrongly receiving” notices to submit income tax, ICAEW warns

Non-UK companies with UK rental profits are “wrongly receiving” notices to submit income tax returns despite being subject to Corporation Tax, a major regulator has warned.

The Institute of Chartered Accountants in England and Wales (ICAEW) said non-UK property businesses could be fined if they were to file the wrong tax return.

According to the regulator, notices to file income tax for the tax year 2020/21 are being served to non-UK companies with UK rental profits, despite being subject to corporation tax since 06 April 2020.

In some cases, it is possible that taxpayers are under enquiry for earlier tax years, meaning income tax accounts have been kept active – triggering automatic reminders to submit an income tax return.

It may also be the case that the company is in receipt of other income sources chargeable to income tax.

But the ICAEW is concerned that non-UK companies receiving such notices “will not realise they have an obligation to file a corporation tax return (CT600) and may therefore suffer penalties if they don’t file one.”

If you are a non-resident landlord and receive a notice to file income tax, it is recommended to speak to your accountant for advice.

For help and advice on related matters, please get in touch with our expert property finance and accounting team today.

Posted in Business, Property Tax.