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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4186
Experience:  FCCA FCMA CGMA ACIS
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R u there? If an offshore co receive UK property management

Customer Question

Hello r u there?
If an offshore co receive UK property management fee of say 20k a year does the co need to declare to UK hmrc given that the declaration has been made already in the country where it has double tax treaty tie with the UK?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. There is no requirement for the offshore company to make any declaration to HMRC in this matter. The company would not be within the UK taxation regime, but under that of the country in which the company is registered. I do hope that I have set your mind at rest on this subject.
Customer: replied 2 years ago.
So is there a threshold limit when the offshore co need to start declaring to hmrc?kindly note such revenue is received based on the services rendered by the clients for property assets sited and located in the UK. Kindly clarify.
Expert:  bigduckontax replied 2 years ago.
None whatsoever, offshore companies have no duty to make declarations to HMRC. Indeed in some tax haven locations even the directors' details are hidden.
Now if an offshore company sells residential landed property in the UK then it, unless it is not a closely-held company, will be liable for Capital Gains Tax on any gain made from an April 2015 valuation.
Customer: replied 2 years ago.
What about the clients who may claim more than what they pay to the offshore co for rendering services....and state in their UK returns. Ie 50 percent payment declared to hmrc when we receive only say 10 percent of it in reality. In such case can hmrc trace back to such co and get the co involve unnecessarily? Pls clarify as it is still under the same question.
Expert:  bigduckontax replied 2 years ago.
HMRC might well request information where they consider tax evasion has taken place, but the offshore company is under no duty to assist the revenue departments of another country. If, of course, HMRC request the offshore government for information, then that is quite a different kettle of fish.
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.