Does your offshore business own UK property? You might receive a HMRC letter

If you are part of an ‘offshore corporate’ that owns UK property, HMRC may be contacting you to ensure you have met your UK tax obligations.

Throughout September HMRC has been getting its latest tax campaign underway. It is currently issuing two letters, accompanied by a Certificate of Tax Position, calling on businesses within its sights to bring their tax affairs up to date.

The letters are typically addressed to corporates. However, many recommend that the companies ask connected UK-resident individuals to ensure their tax information is correct and up-to-date.

Those who receive these nudge letters from HMRC are offered an opportunity to engage with HMRC to remedy any issues and pay the correct amount of tax outside the formal enquiry process.

HMRC say the two planned ‘nudge’ letters target:

• Non-resident companies that own UK property and may need to disclose income received as a non-resident corporate landlord, or a liability to the Annual Tax on Enveloped Dwellings.
• Non-resident companies have disposed of a UK residential property between 6 April 2015 and 5 April 2019, without completing a Non-Resident Capital Gains Tax return.

Nudge letters are typically only aimed at those whom HMRC has grounds to suspect and should be taken seriously.

If you fail to respond to the letter, you could face further action and stricter penalties.

In some cases, HMRC may have made an error, and this can often be easily corrected through engagement with them.

Have you received a HMRC nudge letter? Speak to our team today for advice.