SCHEDULES
SCHEDULE 5Non-UK resident companies carrying on UK property businesses etc
PART 1Extension of scope of charge
1
Section 5 of CTA 2009 (territorial scope of charge to corporation tax) is amended as follows.
2
In subsection (2) (circumstances in which non-UK resident company is within the charge)—
a
omit “or” at the end of paragraph (a), and
b
after paragraph (b) insert
,
c
it carries on a UK property business, or
d
it has other UK property income.
3
After subsection (3) insert—
3A
A non-UK resident company which carries on a UK property business is chargeable to corporation tax on income on all its profits that are—
a
profits of that business, or
b
profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of that business.
3B
A non-UK resident company which has other UK property income is chargeable to corporation tax on income on all its profits that—
a
consist of that income, or
b
are profits arising from loan relationships or derivative contracts that the company is a party to for the purposes of enabling it to generate that income.
4
In subsection (4) for “(2A) and (3)” substitute “and (2A) to (3B)”.
5
At the end insert—
6
In this Part “other UK property income” means income dealt with by any of the following Chapters of Part 4—
a
Chapter 7 (rent receivable in connection with a UK section 39(4) concern);
b
Chapter 8 (rent receivable for UK electric-line wayleaves);
c
Chapter 9 (post-cessation receipts arising from a UK property business).