The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
A 2% surcharge SDLT surcharge that applies to land transactions of residential property in England and Northern Ireland by non-residents came into force with effect from 1 April 2021. The rates apply to purchases of freehold and leasehold property and to SDLT payable in respect of rents on the grant of a new lease.
The surcharge applies in addition to various other rates, including the additional dwelling supplement and the 15% higher rate for non-natural persons.
The existing residence rules for other taxes do not apply for SDLT. A separate residence test is introduced for SDLT, as discussed below. It is important to look at the detail of the test, as sometimes the outcome is counter intuitive. For example, a UK resident close company is considered non-resident for SDLT if it is controlled by non-resident individuals.
It is important to remember that if the transaction is eligible for an SDLT relief that reduces or exempts a charge to SDLT, this also applies to the non-resident surcharge. For a list of SDLT reliefs, see the Stamp duty land tax ― basic rules for companies guidance note.
The non-resident surcharge rules apply to land transactions with an effective date of 1 April 2021 onwards, even though Royal Assent to FA 2021 did not take place until 10 June 2021. This means that between 1 April 2021 and 9 June 2021 advisers needed to apply the Finance Bill version of the legislation; it was not possible to delay the submission of the SDLT return and payment until after Royal Assent. The effective date of the transaction and the transitional rules are discussed in ‘Commencement’ at the end of this guidance note.
Helpfully for advisers, HMRC has already published full guidance on the non-resident surcharge on the GOV.UK website and in SDLTM09850.
Advisers who filed an SDLT return based on the original Finance Bill version of the legislation published in March 2021 should note that
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Liability of the personal representativesAfter a person’s death, the property of the deceased is vested in the personal representatives (PRs) to enable them to manage and distribute the estate in accordance with the Will or the terms of intestacy. See the Personal representatives guidance note.The
Calculation of the effective tax rateAn international group’s effective rate of tax is usually calculated as the amount of tax it pays divided by its consolidated profits. The effective tax rate depends largely on:•the rate of tax paid by each company in the group•the companies in which profits are
IntroductionThe CFC rules as outlined in this note apply to accounting periods beginning on or after 1 January 2013, the date upon which significant changes made by Finance Act 2012 became effective.From this date, the CFC rules also apply to foreign branches in respect of which an exemption
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.