UK property tax changes coming into force in April 2020

From April 2020, new UK property tax changes coming into force for both UK and non UK companies.

From April 2020, new UK property tax changes coming into force for both UK and non UK companies.

From 1 April 2020, new rates will apply for ATED, an annual tax on UK residential properties worth at least £500,000 held by companies, partnerships with at least one corporate partner or by collective investment schemes.

From 6 April 2020, non-UK companies will, like UK companies, be taxed to 19% corporation tax (CT) on gains and rental income from both UK commercial and residential property, as will any property funds which have elected to be taxed as companies.  They must register with online HMRC to file CT returns.  Any non-UK company which has filed UK income tax returns should be receiving a CT tax reference (UTR) from HMRC, which they will need to register.  Returns can only be filed online using commercial software. 

UK residents other than companies, must file an online return and pay any CGT due within 30 days of completing a sale or other disposal of UK real estate (instead of by 31 January following the end of the tax year in which that occurred). 

Individual landlords can only offset mortgage interest against their basic rate (20%) income tax liability on rental income.