James Stewart (Taylor Wessing) reviews the draft legislation extending corporation tax to the UK property income of offshore corporate landlords, and the potential impact on offshore structures.
What is the territorial scope of UK corporation tax for non-UK tax resident companies?
The answer to this fundamental question can be found in CTA 2009 s 5. Until 2016 the scope could be summarised as succinctly set out at CTM34210 of HMRC’s Company Taxation Manual: ‘a company not resident in the UK is only chargeable to CT if it carries on a trade in the UK through a permanent establishment/branch or agency’.
How times have changed. In 2016 s 5 was extended to include non-UK resident companies carrying on a trade of dealing in or developing UK land. (At the time of writing CTM34210 does not mention the 2016 changes which are instead covered in BIM60515 onwards of...
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James Stewart (Taylor Wessing) reviews the draft legislation extending corporation tax to the UK property income of offshore corporate landlords, and the potential impact on offshore structures.
What is the territorial scope of UK corporation tax for non-UK tax resident companies?
The answer to this fundamental question can be found in CTA 2009 s 5. Until 2016 the scope could be summarised as succinctly set out at CTM34210 of HMRC’s Company Taxation Manual: ‘a company not resident in the UK is only chargeable to CT if it carries on a trade in the UK through a permanent establishment/branch or agency’.
How times have changed. In 2016 s 5 was extended to include non-UK resident companies carrying on a trade of dealing in or developing UK land. (At the time of writing CTM34210 does not mention the 2016 changes which are instead covered in BIM60515 onwards of...
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