ARTICLE
Register of Overseas Entities
As a result of concern that foreign investors were using the UK to shelter the proceeds of crime, legislation has recently come into force which requires overseas entities who want to buy, sell or transfer property or land in the UK, to register with Companies House and provide details of who their registrable beneficial owners or managing officers are. Whilst this is a relatively new requirement, it is an area where HM Revenue and Customs (HMRC), the UK tax authorities have indicated that it is an area they will be enforcing, and strict penalties will apply for non compliance.
Corporation Tax
A vehicle often used for investing is a company limited by shares. Companies can be formed fairly easily and are listed on a central register at Companies House. Company directors and/or shareholders need not be based in the UK. Companies are then required to file annual accounts with Companies House as well as corporation tax returns with HMRC, no later than nine months after the end of their financial year. The current rate of corporation tax paid on taxable profits is 19%. A planned increase to the rate in 2023 has recently been scrapped by the new UK government.
Capital Allowances
Companies are able to claim capital allow- ances on certain capital expenditure used to purchase assets for use in the business. The resulting tax deduction varies between an 8% annual allowance on amounts spent on ‘integral features’ and 100% for certain qualifying investments with a 130% ‘super deduction’ applicable to qualifying expenditure incurred prior to April 2023.
THE LEGAL CORNER MAGAZINE | ISSUE 001 SEPTEMBER '22 | ACROSS BORDERS HB 18
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