Non-Resident; Tax on Bank Interest & Dividends

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I understand that if I am non-resident:

1. Bank interest can be paid gross, and tehre is no tax liability.

2. Dividends are taxed at 10% (the tax deducted at source), with no further liability.

3. Property rental income is fully taxable.

Is this correct?

Regards.

[JSK TAXATION]

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The liability for non-UK residents on UK source income is limited to what it would be if:

Tax on what is known as 'disregarded income' were restricted to tax withheld, deducted at source, or given as a credit, and

Any personal allowances otherwise available were not made.

The effect of the above rule is that generally interest and dividends are exempt from tax for a non resident.

However, as you correctly point out in your query, rental profits from UK situate property will be fully chargeable to UK tax subject of course to the normal deductions for income from property businesses together with your personal allowances if applicable.

Kind regards,

John S King
Chartered Tax Adviser
www.taxation-advice.com