Companies owning UK property must be aware of tax changes
24 January 2019
A new raft of changes is being brought in by HMRC, both this April and the following year, which will significantly impact the way that non-resident landlords pay UK tax, delegates heard at a BDO seminar this week.
These changes will affect Guernsey companies, individuals and trusts holding UK property and, whilst they are primarily tax changes, will require company financial statements to adapt to meet the new requirements.
Tax director, Mark Savage, said: “HMRC is trying to ensure that all sales of UK property, not just residential property, are potentially subject to UK tax. So-called property rich companies will also now be subject to capital gains tax in the same way as the sale of the property itself.
“Gathering necessary valuations and keeping good records will be key to making a smooth transition to this new regime, along with the knowledge that preparing tax computations is likely to become a more onerous process.”
Audit director, Dene Reardon, said: “Companies and groups holding UK commercial property may now find themselves having to make provision for deferred tax for the first time, with all the complexities that includes. This could make preparing financial statements much more complex.”