Under UK domestic tax law (not the double tax agreement) when a non-resident receives a UK source dividend the non-resident is treated for UK tax purposes as having paid income tax at the dividend ordinary rate on the amount of the dividend.
The legislation says "includes a distribution of a company". How is that defined? Does that include dividends from UK-based OEICs and similar funds which are put in box 5 (other dividends) rather than box 4 (Dividends from UK companies)?
Also, does anyone here use SelfTax? As a test, I chose non-resident on SA109, entered £35,000 UK employment income on SA102, £6,000 dividends from UK companies (box 4) on SA100 and it calculated "£1,000.00 @ 7.5% = £75.00". This is incorrect (for 2017-18), right? Or did I misunderstand what maths was saying? Does that notional tax paid have to be entered somewhere or should that be done automatically by the software/SA?