Rent paid to offshore company
We have a client who's landlord is now offshore and the company is based in Gibraltar. They've been told that they have to deduct tax from their rent payment before they transfer it to them and pay it over to HMRC. Is this correct and at what rate would be payable?
How would they go about reporting it?
Comments
And how would this be
And how would this be reported?
I assume that the tax they
I assume that the tax they pay over would then be deductible against corporation tax?
Yes, as part of rent 1 thanks
In my view it's all just rent in your client's P&L - the e.g. £80 paid to the landlord and the £20 withheld and paid to HMRC.
NRL- non-resident landlords 1 thanks
Your client deducts basic rate unless the landlord gets permission to receive rent gross. It's set out here:
http://www.hmrc.gov.uk/international/nr-landlords.htm