Income Tax (Trading and Other Income) Act 2005

This is our most popular package with UK residents, and includes: -

The registration of your company from scratch using your own registered office address, and appoint your own candidates to the roles of director, secretary (if needed), and shareholder;

The standard capital on formation is £1.00, this is divided into 1.00 ordinary share valued at £1.00 (a minimum of one share must be issued);

The formation of a limited company usually takes as little as four to six hours from the time that your application and payment are received by Coddan;

The government fee for incorporation is included in the price of this package;

The following documents, which need to be printed and signed, will be emailed to you upon formation of your company: -

A certificate of incorporation (requires PDF file reader);

The memorandum & articles of association (requires MS-Word file reader);

The first meeting of the board of directors (requires MS-Word file reader);

Share certificates and a company register (requires MS-Word file reader).

E-Quick Package

£ 32.00

No Annual Charges

The Deluxe limited company package is a fast and easy option, it is ideal for the UK, EU, and international small to medium businesses who wish to appoint a nominee director and a nominee secretary in order to maintain anonymity, and it includes: -

Incorporation of your company from scratch using one of our registered office addresses in London, our nominee director and nominee secretary. We can appoint your own candidate(s) to the role of shareholder(s), or you can appoint a nominee sharholder provided by Coddan;

The standard capital on formation is £1.00, this is divided into 1.00 ordinary share valued at £1.00 (a minimum of one share must be issued);

The formation of a limited company usually takes as little as four to six hours from the time that your application and payment are received by Coddan;

The government fee for incorporation is included in the price of this package;

The provision of a registered office address for 12 months is included in the price of this package (our registered office address service is charged annually);

The provision of a nominee secretary for 12 months is included in the price of this package (our nominee secretary service is charged annually);

The provision of a nominee director for 12 months is also included in the price of this package (our nominee director service is charged annually);

The following two hard bound copies of corporate documents, will be posted to you upon formation of your company: -

A laminated copy of the certificate of incorporation of your company;

A hard bound copy of the memorandum and articles of association;

A hard bound copy of the minutes of the first meeting of directors;

Share certificates, and your company register;

The general power of attorney signed by a nominee director;

Pre-signed, undated resignation letter from a nominee director;

The agreement for the provision of nominee service and indemnification of nominee.

Deluxe Package

£ 557.00

Annual Maintenance Fee £525.00

A private company limited by shares in England and Wales must have at least one director, one shareholder, and may have a secretary.

You need at least one person to form this type of company. If there is only one director, and that director is a natural person in your company, that director can also act as the secretary.

A company must have at least one director who is a natural person. This requirement is met if the office of director is held by a natural person as a corporation sole or otherwise by virtue of an office.

You can register a sole director' company, if you are familiar with the secretaries duties and responsibilities, because all of them belongs to a sole director.

The directors and secretary of your company can also be shareholders.

The Companies Act imposes no restriction on the minimum age of company directors. However Companies House will actively discourage the appointment of anyone under the age of 16 from taking up a company directorship on the grounds that the individuals concerned may not fully understand the legal liabilities that go with the position and for the most part will not have the experience necessary to perform the duties of a company director.

Under the Companies Act 2006, there is no restriction on any or all of the members/shareholders being from an overseas country (i.e. outside the United Kingdom in terms of residency, domicile, citizenship, place of incorporation or all or any of those concepts).

There is no requirement for the officers of your company to be UK citizens or residents, nor for them to hold valid work permits.

Owning, or being an officer of a UK company does not, however, grant you any right to live or work in the UK if you are a foreign national.

Your company must have a registered office address within England or Wales; this is the official address of your company and will be on the public record as such.

Your company must hold its official company documents at its registered office address: its register of shareholders, and its constitutional documents.

So long as you maintain a registered office address in England or Wales, you can conduct your business from any place in the world: you do not have to run your business from your registered office address.

Legal Requirements to Register an LTD

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Income Tax (Trading and Other Income) Act 2005
2005 Chapter 5 - continued
PART 3, PROPERTY INCOME - continued

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	CHAPTER 5
	PROFITS OF PROPERTY BUSINESSES: OTHER RULES ABOUT RECEIPTS AND DEDUCTIONS
	Furnished accommodation: receipts and deductions
308	Furnished lettings
	(1) In calculating the profits of a property business which consists of or includes a furnished letting-
	(a) any sum payable for the use of furniture is brought into account as a receipt, and
	(b) a deduction is allowed for expenses incurred in connection with the provision of furniture.
	(2) But subsection (1) does not apply to receipts or expenses brought into account in calculating the profits of a trade which consists of, or involves, making furniture available for use in premises.
	(3) A furnished letting is a lease or other arrangement under which-
	(a) a sum is payable in respect of the use of premises, and
	(b) the person entitled to the use of the premises is also entitled, in connection with that use, to the use of furniture.
	(4) In this section-
	(a) "premises" includes a caravan and a houseboat, and
	(b) "sum" includes the value of any consideration.
309	Rent-a-room relief
	(1) The rules for calculating the profits of an individual's UK property business are subject to Chapter 1 of Part 7 (rent-a-room relief).
	(2) That Chapter provides relief on income from the use of furnished accommodation in the individual's only or main residence (see, in particular, sections 793 and 797).
	Treatment of receipts on acquisition of business
310	Acquisition of business: receipts from transferor's UK property business
	(1) This section applies if-
	(a) a person ("the transferor") permanently ceased to carry on a UK property business at any time,
	(b) at that time the transferor transferred to another ("the transferee") the right to receive sums arising from the carrying on of any business ("the transferred business") comprised in the transferor's UK property business, and
	(c) the transferee subsequently carries on the transferred business.
	(2) Sums-
	(a) which the transferee receives as a result of the transfer, and
	(b) which are not brought into account in calculating the profits of the transferor's UK property business for any period before the cessation,
	are brought into account in calculating the profits of the transferee's UK property business in the period of account in which they are received.
	(3) Any sums mentioned in subsection (1)(b) which are received after the cessation of the transferor's property business are not post-cessation receipts (see Chapter 10).
	(4) This section has effect as if it were contained in Chapter 10.
	Reverse premiums as receipts
311	Reverse premiums
	(1) This section applies if-
	(a) a person receives a reverse premium, and
	(b) the reverse premium is not brought into account under section 101(2) in calculating the profits of any trade carried on by the person.
	(2) The person is treated as-
	(a) entering into a transaction mentioned in section 264 (if the land to which the property transaction relates is in the United Kingdom) or section 265 (if that land is outside the United Kingdom), and
	(b) receiving the reverse premium as a result of that transaction.
	(3) Accordingly, the reverse premium is brought into account as a receipt in calculating the profits of the property business which consists of or includes that transaction.
	(4) Subsection (5) applies if-
	(a) two or more of the parties to the property arrangements are connected persons, and
	(b) the terms of those arrangements are not such as would reasonably have been expected if those persons had been dealing at arm's length.
	(5) The whole amount or value of the reverse premium is brought into account in the period of account in which the property transaction is entered into.
	(6) Expressions used in this section and sections 99 to 103 have the same meaning in this section as they do in those sections.
	Deductions for expenditure on energy-saving items
312	Deduction for expenditure on energy-saving items
	(1) This section applies if-
	(a) a person carries on a property business in relation to land which consists of or includes a dwelling-house,
	(b) the person incurs expenditure in acquiring and installing in the dwelling-house an energy-saving item (see subsections (5) to (7)),
	(c) the expenditure is incurred before 6th April 2009,
	(d) a deduction for the expenditure is not prohibited by the wholly and exclusively rule but would otherwise be prohibited by the capital prohibition rule (see subsection (8)), and
	(e) no allowance under CAA 2001 may be claimed in respect of the expenditure.
	(2) In calculating the profits of the business, a deduction for the expenditure is allowed.
	(3) But any deduction is subject to-
	(a) section 313 (restrictions on the relief), and
	(b) any provision made by regulations under section 314.
	(4) If, on a just and reasonable apportionment of any expenditure, part of the expenditure would qualify for the relief (but the remainder would not), a deduction is allowed for that part.
	(5) "Energy-saving item" means-
	(a) cavity wall insulation,
	(b) loft insulation, or
	(c) such other descriptions of items of an energy-saving nature as are for the time being specified in regulations made by the Treasury.
	(6) The Treasury may by regulations provide for an item to be treated as an energy-saving item only if it satisfies such conditions as may be-
	(a) specified in, or
	(b) determined in accordance with,
	the regulations.
	(7) The conditions may include conditions imposed by reference to information or documents issued by any body, person or organisation.
	(8) In this section-
	"the capital prohibition rule" means the rule in section 33 (capital expenditure), as applied by section 272, and
	"the wholly and exclusively rule" means the rule in section 34 (expenses not wholly and exclusively for trade and unconnected losses), as applied by section 272.
313	Restrictions on relief
	(1) This section restricts deductions that would otherwise be allowable under section 312.
	(2) No deduction is allowed if, when the energy-saving item is installed, the dwelling-house-
	(a) is in the course of construction, or
	(b) is comprised in land in which the person does not have an interest or is in the course of acquiring an interest or further interest.
	(3) No deduction is allowed in respect of expenditure in a tax year if-
	(a) the business consists of or includes the commercial letting of furnished holiday accommodation (see Chapter 6), and
	(b) the dwelling-house constitutes some or all of that accommodation for the tax year.
	(4) No deduction is allowed if-
	(a) the person derives rent-a-room receipts from the dwelling-house, and
	(b) those receipts are brought into account in calculating the profits of the business in accordance with section 793 or 797 (rent-a-room relief).
	(5) No deduction is allowed in respect of expenditure treated by section 57 (as applied by section 272) as incurred on the date on which the person starts to carry on the business unless the expenditure was incurred not more than 6 months before that date.
314	Regulations
	(1) In relation to any deduction under section 312, the Treasury may make regulations for-
	(a) restricting or reducing the amount of expenditure for which the deduction is allowable,
	(b) excluding entitlement to the deduction in such cases as may be specified in, or determined in accordance with, the regulations,
	(c) determining who is (and is not) entitled to the deduction if different persons have different interests in land that consists of or includes the whole or part of a building containing one or more dwelling-houses,
	(d) making apportionments if the property business is carried on by persons in partnership or an interest in land is beneficially owned by persons jointly or in common.
	(2) The apportionments that may be made include apportionments to companies within the charge to corporation tax.
	Deductions for expenditure on sea walls
315	Deduction for expenditure on sea walls
	(1) This section applies if in a tax year a person -
	(a) is the owner or tenant of any premises, and
	(b) incurs expenditure in making a sea wall or other embankment necessary for the preservation or protection of the premises against the encroachment or overflowing of the sea or any tidal river.
	(2) In calculating the profits of any property business carried on by the person in relation to the premises, a deduction is allowed for the expenditure in each tax year in the deduction period.
	(3) The deduction period comprises-
	(a) the tax year in which the expenditure is incurred, and
	(b) the next 20 tax years.
	(4) The amount of the deduction is 1/21 of the expenditure.
	(5) No deduction is allowed for any expenditure in respect of which a capital allowance has been made.
	(6) Section 316 deals with the case of an interest in the premises being transferred (and this section applies in that case as if the reference to the person in subsection (2) above included the transferor and the transferee).
316	Transfer of interest in premises
	(1) This section applies if, during the deduction period, the whole of the person's interest in the premises or in any part of them is transferred, whether by operation of law or otherwise.
	(2) For the tax year in which the transfer takes place-
	(a) the transferor and the transferee are entitled to a part of any deduction under section 315, and
	(b) the amount of the deduction is determined by what is just and reasonable.
	(3) For subsequent tax years in the deduction period, the entitlement to any deduction under section 315 depends on whether the interest transferred is in the whole of the premises or in part of them.
	(4) If the interest transferred is in the whole of the premises, the transferee (but not the transferor) is entitled to any deduction under section 315.
	(5) If the interest transferred is in part of the premises-
	(a) the transferor and the transferee are entitled to a part of any deduction under section 315, and
	(b) the amount of the deduction is determined by reference to what is properly referable to the part of the premises.
	(6) This section is supplemented by sections 317 (ending of lease of premises) and 318 (transfer involving company within the charge to corporation tax).
317	Ending of lease of premises
	(1) If a person's interest in the premises is a lease that comes to an end before the end of the deduction period, the interest is treated as if transferred to the following persons.
	(2) If a new lease of the premises is granted and the new tenant makes a payment in respect of the embankment in question to the old tenant, the transferee is the new tenant.
	(3) Otherwise the transferee is the owner of the interest in immediate reversion on the lease (or, in Scotland, the landlord).
318	Transfer involving company within the charge to corporation tax
	(1) This section explains how section 316 works if-
	(a) the transferor is a person within the charge to income tax and the transferee is a company within the charge to corporation tax, or
	(b) the transferor is a company within the charge to corporation tax and the transferee is a person within the charge to income tax.
	(2) Section 316 applies only for the purpose of determining-
	(a) whether the person within the charge to income tax is entitled to a deduction (or part of a deduction) under section 315, and
	(b) the amount of any such deduction.
	(3) Accordingly, any reference to-
	(a) whether a person is entitled to a deduction (or part of a deduction) under section 315, or
	(b) the amount of any such deduction,
	is ignored if the person is a company within the charge to corporation tax.
	(4) For any entitlement of a company within the charge to corporation tax to a deduction for any of the expenditure, see section 30 of ICTA (corresponding corporation tax provision).
	Mineral royalties
319	Relief in respect of mineral royalties
	(1) This section applies if in a tax year a person who is UK resident, or ordinarily UK resident, carries on a UK property business the receipts of which consist of or include mineral royalties-
	(a) which the person is entitled to receive under a mineral lease or agreement, and
	(b) which are not chargeable to tax under Chapter 8 (rent receivable in connection with a UK section 12(4) concern).
	(2) In calculating the profits of the business, the person is treated as-
	(a) entitled to receive only half of the total of the mineral royalties arising under the lease or agreement in the tax year, and
	(b) making in the tax year only half of the total of the payments made in respect of the management of the property concerned.
	(3) Sections 341 to 343 (meaning of "mineral lease or agreement" and "mineral royalties") apply for the purposes of this section as they apply for the purposes of Chapter 8.
	Apportionments on sale of land
320	Nature of item apportioned on sale of estate or interest in land
	(1) This section applies if-
	(a) a person sells an estate or interest in land,
	(b) on the sale a part of a receipt or outgoing in respect of the estate or interest is apportioned to the seller, and
	(c) the receipt or outgoing is receivable or to be paid by the buyer after the apportionment is made.
	(2) In calculating the profits of the seller's property business, the part apportioned is treated as being of the same nature as the receipt or outgoing.
	Mutual business
321	Mutual business
	(1) Nothing in this Part is to be read as applying the rules relating to mutual business to property businesses.
	(2) Accordingly, receipts and expenses are to be brought into account in calculating the profits of a person's property business even if a relationship of mutuality exists between that person and another.



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Prepared 29 March 2005


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