A: A company is non-resident for the purposes of the 2% additional charge if on the effective date of the chargeable transaction the company is UK resident for the purposes of the Corporation Tax Acts, is a close company, meets the non-UK control test in relation to the transaction and is not an excluded company. See SDLTM09930 for the definition of an excluded company.
Based on the information provided the company meets the first 3 conditions and is not an excluded company so would be liable to the additional 2% rate.
The relevant legislation for the above can be found in Finance Act 2003, Schedule 9A, paragraphs 7 through 10.
HMRC information available at:
These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.
About Markel Tax
Markel Tax offers expert advice on UK tax and VAT via its helpline and provides monthly FAQs with questions and answers on common tax issues for businesses and practitioners.
