Non-resident landlord companies

Corporation Tax

Starting from 6th April 2020, non-resident landlord companies are required to report their UK income using a CT600 return under the corporation tax system, for the tax year 2020/21 and onwards. A significant change from the previous system is that accounts must be prepared along with the corporation tax return (CT600). These documents need to be filed electronically using a commercial iXBRL filing software system. Unfortunately, HMRC does not offer a free HMRC corporation tax filing software.

If rental income began on or after 6th April 2020, companies can no longer register under the NRL scheme. Instead, they must register directly for corporation tax using the provided link to Register for Corporation Tax.

Filing the CT600 tax return and tax payment dates

The CT600 must be filed online one year after the year-end date.

Under the corporation tax system, any tax liability owed to HMRC must be paid nine months and one day after the year-end date.

For example, if the year-end date is 5th April 2022, the CT600 filing deadline would be 5th April 2023, and any tax liability would be due to HMRC on 6th January 2023.

Corporation tax rates

Corporation tax is charged at 19%. From 1st April 2023, the Government has proposed that corporation tax will be charged at 19% on the first £50,000 of profits, 26.5% on the next £200,000 of profits, and 25% on any profits exceeding £250,000. If you (or a group of you) control more than one company, the bands are divided equally among the associated companies.