Finance Act 2019 (c. 1)

SCHEDULES

SCHEDULE 5 Non-UK resident companies carrying on UK property businesses etc

PART 1 Extension 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).”