Overseas Companies Holding UK Property
Holding UK property through an overseas company brings a handful of separate filing obligations, and they do not always sit together neatly. We help you work out which of them apply to you, keep each one up to date, and take an honest look at whether the structure still earns its keep.
These obligations sit side by side. It is a common misunderstanding that registering with Companies House also deals with HMRC. It does not. Corporation Tax, ATED and the Register of Overseas Entities each run to their own rules and their own deadlines, and dealing with one does not take care of the others. We keep track of all three for you, so nothing is missed.
Register of Overseas Entities
Registration and annual updates
Overseas entities that hold qualifying UK land or property may need to register with Companies House and give verified information about their beneficial owners or managing officers. Once registered, the entity has to file an annual update statement, normally within 14 days of its statement date, even in a year when nothing has changed. This one is worth staying on top of: if it slips, the Overseas Entity ID can stop being valid, which in turn can hold up a sale or other dealing with the property. We handle the registration, the annual updates and the verification arrangements that go with them.
Corporation Tax
Rental profits and property disposals
Since 6 April 2020, non-UK-resident companies receiving UK property income have generally been within Corporation Tax rather than Income Tax. A non-resident company letting UK property will normally pay Corporation Tax at the main rate, currently 25%; the 19% small profits rate and marginal relief generally do not apply to an ordinary non-resident property investment company. We prepare the CT600 return and supporting computations, including a review of deductible expenses, financing costs and available losses. We also advise on Corporation Tax arising when the company sells or transfers UK property, including the historic valuation and rebasing provisions relevant to calculating the gain.
Non-Resident Landlord Scheme
Receiving rent without deduction
We can also assist with Non-Resident Landlord Scheme applications so that, where HMRC approves, rental income can be received without tax deducted at source. Approval does not remove the company's Corporation Tax obligations; it changes how the rent is collected, not whether the profits are taxable.
Annual Tax on Enveloped Dwellings (ATED)
Annual returns, relief claims and historic omissions
ATED can apply to companies and certain other entities holding UK residential property valued at more than £500,000. For property held on 1 April, the annual return and any payment are normally due by 30 April, with different deadlines for acquisitions and newly built properties during the year. Commercial letting relief may reduce the charge to nil, but a Relief Declaration Return is still required where that relief is claimed. We review current obligations, prepare annual returns, and help resolve historic filing omissions.
Ownership reviews and de-enveloping
Comparing the options
We help owners assess whether retaining a company remains appropriate, or whether transferring the property into personal ownership should be considered. Our review compares the ongoing tax and compliance costs with the potential costs of unwinding the structure. Depending on the transaction, these can include Corporation Tax on the company's gain, tax at shareholder level, and property transaction taxes such as Stamp Duty Land Tax (in England and Northern Ireland). We work alongside the company's legal and overseas advisers before any transfer or winding-up proceeds.
Rates, thresholds and deadlines change, and the treatment of a disposal depends on the particular property and ownership history. We confirm the position for your circumstances before you act. For UK-resident company compliance, see our Corporate Tax Services.
Frequently Asked Questions
Own UK property through an overseas company?
Tell us about the property, the company and your current filings, and we'll identify the work required and provide a tailored quote.