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Where Taxpayers and Advisers Meet

Certificate of Residence under the terms of a Double Taxation Agreement

dommm
Posts:4
Joined:Tue Jan 26, 2021 1:32 pm
Certificate of Residence under the terms of a Double Taxation Agreement

Postby dommm » Tue Jan 26, 2021 5:07 pm

Hello everyone,

I would be grateful if you could help me better understand under which conditions a Certificate of Residence is released here in the UK.

My situation is the following:
- I am an Italian citizen who has been living in the UK for 3+ years.
- I have spent less than 140 days in Italy during this period.
- I have been living on a UKRI funded PhD studentship and on casual work as teaching assistant at my university.
- Close to the end of my PhD, I have accepted a job offer in Italy.

I have been asked to provide a Certificate of Residence in the UK under the terms of a Double Taxation Agreement for the past two tax
years, so as to benefit from income tax reduction in Italy under the "Relocation of skilled workers" (please see below).

"Relocation of skilled workers" (so called "Rientro dei cervelli")
Italian employees who return to Italy and re-acquire Italian residence will benefit from an income tax reduction for the first five years of their residence. In order to be eligible, the employee needs a Certificate of Residence in a foreign country for the two tax years preceding their return to Italy, under the terms of a Double Taxation Agreement.

Now, HMRC does not issue a Certificate of Residence in the UK under DTA unless the applicant claims tax relief on a foreign income (otherwise HMRC only issues a Letter of Confirmation of Residence, which would not be enough for the "Relocation of skilled workers").

My question is the following.
During this tax year I have received a prize and a payment (which has been taxed in Italy) issued by an italian university. Would claiming tax relief on such income be enough to obtain a Certificate of Residence in the UK under DTA? If yes, which article of the DTA should be quoted for this request?

Thank you for your help!

maths
Posts:8157
Joined:Wed Aug 06, 2008 3:25 pm

Re: Certificate of Residence under the terms of a Double Taxation Agreement

Postby maths » Tue Jan 26, 2021 8:25 pm

Are you absolutely sure that the Italian authority will not accept a letter confirming UK residence?

They must know UK will not issue a certificate of residence unless it is to be used to claim treaty benefits.

I doubt if the items you mention are taxed here in the UK.

dommm
Posts:4
Joined:Tue Jan 26, 2021 1:32 pm

Re: Certificate of Residence under the terms of a Double Taxation Agreement

Postby dommm » Tue Jan 26, 2021 10:04 pm

I am sure, unfortunately.
They explicitely ask for a Certificate of Residence under the terms of a DTA and the company I will be working for has told me a Letter of Confirmation of Residence will not be enough.

bibescu
Posts:21
Joined:Tue Sep 21, 2010 9:33 am

Re: Certificate of Residence under the terms of a Double Taxation Agreement

Postby bibescu » Wed Jan 27, 2021 11:40 am

Hi.

For getting a certificate of residence go to HMRC, log in using your personal details and follow the steps.
https://www.gov.uk/guidance/get-a-certificate-of-residence

dommm
Posts:4
Joined:Tue Jan 26, 2021 1:32 pm

Re: Certificate of Residence under the terms of a Double Taxation Agreement

Postby dommm » Wed Jan 27, 2021 3:28 pm

Hi.

For getting a certificate of residence go to HMRC, log in using your personal details and follow the steps.
https://www.gov.uk/guidance/get-a-certificate-of-residence
Thank you bibescu, I already followed the procedure several weeks ago but haven't received any reply yet (I had to email a compiled form rather than login with my details, as I was asked a UK Passport to set up an account).
I gave them the information I have written in this post and quoted article 22 of the DTA (i.e. Other income).

Given that I am not sure they will provide a Certificate of Residence, my intention with the OP was to gather some more information and either re-apply for a Certificate or contact HMRC directly.

darthblingbling
Posts:387
Joined:Wed Aug 02, 2017 9:09 pm

Re: Certificate of Residence under the terms of a Double Taxation Agreement

Postby darthblingbling » Wed Jan 27, 2021 4:27 pm

Try the contactexpat@hmrc.gov.uk address. I recently raised a query to them regarding obtaining a certificate of residence for a client who was an inbound assignee as she needed it in her home country to stop tax withholding from incurring while she was on assignment. The form online is tailored to individuals who are normally resident in the UK so wasn't suited to my client, but the expat team offered to help and provide a certificate if I just provided them with relevant information.

dommm
Posts:4
Joined:Tue Jan 26, 2021 1:32 pm

Re: Certificate of Residence under the terms of a Double Taxation Agreement

Postby dommm » Wed Jan 27, 2021 9:50 pm

Try the contactexpat@hmrc.gov.uk address. I recently raised a query to them regarding obtaining a certificate of residence for a client who was an inbound assignee as she needed it in her home country to stop tax withholding from incurring while she was on assignment. The form online is tailored to individuals who are normally resident in the UK so wasn't suited to my client, but the expat team offered to help and provide a certificate if I just provided them with relevant information.
Thank you darthblingbling, I will try.


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