From 6 April 2020 non-resident companies which own UK property were required to start paying corporation tax (CT) rather than income tax on their profits from rents. As these companies were previously required to pay income tax on a tax year basis, HMRC’s default position is that the company’s accounting date will be 5 April unless the company informs HMRC otherwise.
HMRC undertook to automatically issue non-resident landlord companies with CT unique taxpayer references (UTRs) and this process was completed in 2020. However, as payment and filing deadlines for many of these companies are now approaching, agents are discovering that many of their corporate non-resident landlord (NRL) clients have not received a CT UTR.
The Tax Faculty advises that if your corporate NRL client has not yet received their CT UTR, HMRC should be provided with a new signed 64-8 form, agent authority for corporation tax, together with a covering letter. The letter should quote the corporate NRL’s income tax self assessment UTR on the covering letter, but the space for the UTR on the new 64-8 should be left blank.
The letter and 64-8 agent authority form should be sent to:
Charities, Savings and International 1, HM Revenue and Customs, BX9 1AU.
If agents have a number of corporate NRL clients who have not received their CT UTR, they can send all the applications in one envelope. However, as HMRC will potentially allocate each 64-8 form to different staff members, agents must ensure that there is a separate covering letter for each 64-8.
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
More support on tax
ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.Sign up for TAXwireJoin the Tax Faculty
More from the Tax Faculty
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.