I am completing a CT600 (small) for a very small company (t/o 3k) which just about broke even, with a small amount Bank interest. It also buys and sells property overseas through the UK (as a trade - but did not have any transactions this year due to the current market).
It made a loss on a tiny amount of rental income on one of the properties Overseas - rented also from the UK. This is what I seem to be having a problem with.
Do I treat it as Income from UK Land or Building? Or just report the loss under Overseas Property business losses Case V? Am I completing the right form and sections?
Confused Anon
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Replies (4)
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Overseas income
Even though the cash is received in the UK I think that the rental income will be within Schedule D Case V. Therefore, as you say the loss can be reported in the box you mention. However, if the company makes a profit from the overseas rental, you will need to complete the full CT600 form even if the company remains small.
The above is on the assumption that none of the properties are rented to anyone connected with the shareholders.
Have the directors' considered whether they need to submit a tax return in the country where the property is situated?
Edit: I have just realised I missed part of my text from the answer. I had originally intended to the end of the first paragraph to read - "...even if the company remains small and pays tax at the small companies rate.
Regards
Jacqui
UK company
The company is registered in the UK.
The reason I mention the UK several times is that all the transactions are actually in the UK. The Rental Income is paid in the UK, as the overseas property is rented (holiday lets) only to UK residents.
The properties are also only sold to UK residents for sterling into a UK Bank account.
The only thing not in the UK, is the actual property itself.
Where is the company registered?
It appears that most of the income arises overseas. Also, you mention "through the UK" a number of times.
Could it be that the company is not UK registered?
Regards
Jacqui