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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am a director of a Panamanian Company , in 2000 we lent 300k

Customer Question

I am a director of a Panamanian Company , in 2000 we lent 300k pounds to a uk individual
for personal use
It has never been used as a tax deduction
WE took a charge on a parcel of land
to secure the debt
The land is being sold
Are we liable to tax in the UK on the interest ?
We have no business in the UK and no representation in the UK
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.A non resident company receiving investment income (interest on loan to a UK based individual) would be chargeable to UK income tax. It should be declared by completing SA 700 - Tax Return for non-resident company liable to income tax.The return can be downloaded from herehttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/419935/sa700-2015.pdfThe guide to how to fill in the NOn-residential Company Tax Return can be found here (look at Boxes 4.1 to 4.4 on Page 14.https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/419938/sa750-2015.pdf I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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