Non-Resident Companies liable to Corporation Tax

Introduction

Non-resident companies that pay Non-Resident Capital Gains Tax will now be chargeable to Corporation for any disposals made on or after 06/04/2019 and they will need to be reported on the CT600 instead of the SA700.

To cater for this there have been some updates within Business Tax for Non-Resident Companies.

There is now a check box on the tool bar which can be selected to create a CT600 for the Non-Resident client.

 

As this only affects disposals on or after 06/04/2019. This is visible when Tax year 2020 or later is selected.

Additionally, for tax year 2020 onward, the option for entering Capital Gains is no longer available to access unless the CT functionality has been selected.

To trigger CT, select the Liable for Corporation Tax option. This will then start the process of creating the account period that is needed to report the Capital gains.

Once the accounting period has been selected, all the data entry  options will be updated to incorporate the CT functionality as well as retaining SA700 functionality:

All the drop-down options on the top of the screen will be updated to allow for dual functionality for both return types for the company. The options for SA700 have been updated to ensure that capital gains cannot be entered in the data entry sections nor is it printed in any of the SA700 reports.

The SA700 options will continue to be based around the tax year that is selected in the toolbar. The CT600 options are all relevant to the accounting period that is selected at the top of the screen. Both functions operate independently of each other for the company.

 

Capital Assets data entry update

From 06/04/2019, Non resident companies are charged on indirect and direct disposals of all UK property or land.

The capital assets screen has been updated to accommodate for this. When going to Edit | CT600 | Capital Assets | Assets | Add, the Market Value field has been expanded. Clicking on the magnifying glass next to it opens the screen where the relevant entries can be made within:


The asset type must be selected.

If Direct is selected, then the Market Value will default to at 5th April 2015.

If Indirect is selected, then the Market Value will default to at 5th April 2019.

If N/A is selected the Market Value will default to No Rebasing Applies and the Market Value field is disabled, therefore the Amount Paid in the prior screen will be used to calculate the gain.

The Market Value also includes the option for at 31st March 1982. The default Market Values selected can be changed if required.

When there is an Indirect disposal and No Rebasing has been selected, where a loss arises based on these entries, the loss will not be an allowable loss and will show as such in the disposals screen and CT computation.

 

Capital Gains Reports

The Enhanced Computation and the Capital Gains Computation have been enhanced to show the asset type as entered in the data entry section and the disposal calculation has been updated to use the relevant Market Value as selected.