Am I eligible for Non-Resident Landlord tax?

Companies incorporated through the GetGround platform are incorporated in the UK and are resident in the UK, they are not subject to NRL. However, as with many things, there may be shades of grey so customers should consult with a tax/legal specialist in the event that they
are unsure.

The HMRC guidance is quite clear that companies that are regarded as UK residents for tax purposes have a usual place of abode in the UK and are therefore not within the NRL scheme. 

The statutory position is that companies incorporated in the UK are residents of the UK for tax purposes. A UK company with UK property income will be required to pay tax on its profits from the UK property in the UK and file its corporation tax returns.  

It is possible that if the company’s central management and control is exercised in a territory outside of the UK, that non-UK territory may want to try and bring it into tax residency in that territory as well. Each territory will have its own rules on what they consider residency to be determined by. Where there is a double tax treaty in place, there is often a ‘tie breaker’ provision to determine in which country the company will be treated as a tax resident to avoid double taxation. However, as noted above, even where a company was deemed to be a non-UK resident under a double tax treaty, it would still need to prepare and file its Corporation Tax returns in the UK.

If an SPV does find itself in a position where another jurisdiction seeks to exert tax residency then if it is established that it is tax resident outside the UK it is still not automatic that the NRL scheme would apply since it comes back to the concept of usual place of abode. Ultimately if the SPVs are paying Corporation Tax on their rental profits anyway (which they will be irrespective of tax residency) then there is no tax loss to HMRC if the tenant or agent doesn’t operate the NRL scheme on the rents. If an agent did decide to categorise the company as an NRL, any tax deducted at source would be offset against the Corporation Tax due based on the return so the same amount of tax in total will be paid.