When does the UK tax non-resident companies?
When does the UK tax non-resident companies?

The following Tax guidance note provides comprehensive and up to date legal information covering:

  • When does the UK tax non-resident companies?
  • Companies owning UK property
  • Trading in the UK or trading with the UK
  • Trading through a permanent establishment
  • The income tax charge on non-resident companies
  • Trading income (not from a trade of dealing in or developing UK land)
  • Property income
  • Savings and investment income
  • Income from intellectual property
  • Capital gains
  • more

FORTHCOMING CHANGE relating to UK property business and non-UK resident companies: From 6 April 2020, non-UK resident companies will be brought into the charge to corporation tax in respect of their profits from a UK property business. The changes are contained in section 13 and Schedule 5 to the Finance Act 2019. For more details, see News Analysis: Corporation tax for non-UK resident companies carrying on a UK property business.

FORTHCOMING CHANGE relating to the digital services tax: As announced at Budget 2018 and following a consultation in November 2018, the government will introduce a 2% tax from 1 April 2020 on certain digital businesses in respect of revenues derived from UK users. For more, see News Analyses: Draft Finance Bill 2019–20—Tax analysis—Digital services tax and Exploring the consultation on the design and implementation of a digital services tax.

When a company that is resident outside the UK starts doing business in the UK, it will want to know whether and to what extent the activities of that business will be subject to UK tax.

There are special rules for companies with income and/or gains from UK property (land and buildings), see below, and for companies operating in the oil and gas sector, see Practice Note: Oil and gas—corporation tax and the supplementary charge—Non-residents. In other cases, whether a non-UK resident company has