Repayment of Withholding tax

[zaphod_es]

A retired married couple neither resident, ordinarily resident nor domiciled in the UK have 100% of their income arising in the UK and suffer withholding tax on all of their income. This results in them suffering a tax bill which would not arise if either they lived in the UK or the income arose in Chile (where they live).

Many years ago there was an option for people in this position to elect to fill in a tax return, include all world income and be taxed as if they were resident in the UK and receive a repayment of withholding tax. Is there still any such relief still available?

ZB

[King_Maker]

What type of UK source income - pension, deposit interest, rents etc?

[maths]

As King-Maker is implicitly suggesting, UK income tax is not leviable on certain UK source income arising to non-UK residents (eg UK bank interest); income tax on dividend income is restricted.

The possible "capping" of a non-UK resident's UK income tax liability to which you refer still operates under the guise of "disregarded income" in certain cases.

If you are, inter alia, British nationals you are entitled to personal allowances.

The UK/Chile double tax agreement is of little help I believe.