Over the next 18 months there will be a number of changes introduced to the U.K. taxation system concerning the taxation of U.K. real estate. Two changes are particularly significant to the hotel industry:
1) Taxing gains made by non-residents on U.K. immovable property – Starting 6 April 2020 non-U.K. resident companies that carry on a U.K. property business will be charged to U.K. corporation tax, rather than to U.K. income tax as at present. This taxation will ‘level the playing field’ between U.K. and non-U.K. resident companies in receipt of similar income.
2) Application to non-U.K. resident investors in U.K. hotels – Disposals made on or after 6 April 2019 will affect non-U.K. residents being taxed on gains for U.K. property. An exemption may be available for certain hotel investors.
Our latest A&M insight covers both provisions in more detail, identifying key steps to consider when preparing for their arrival:
If you have any questions regarding any of the content covered, please contact one of the authors or a member of our A&M Taxand team.