Dividend tax for non-resident

[Jetsetter4805]

Hi,

I have been non-resident for several years but am operating through a UK limited company as my clients are UK based. I am confident of my non-resident status having no real ties (property, family etc) with the UK and only spend 20-30 days in the UK per year.

Could someone please confirm how the 7.5% dividend tax will impact me? Would I still be liable to pay this in the UK or does my non-resident status help me in any way?

Many thanks

[LozaACCS]

A non residents IT liability is restricted to IT deducted at source on disregarded income (S811 ITA 2007)
Disregarded income includes savings interest, dividends, pensions and some social security benefits.
So if you do not claim a personal allowance (assuming you are entitled to one) then you have no liability, if however you claim your PA then the dividend will be taxable, a calculation needs therefore to be made to decide whether claiming the PA is worthwhile.

[Jetsetter4805]

Thanks Loza.

I am still being asked to submit an IT return and the only income to declare thus far is bank account savings interest where income tax is deducted at source. This is then refunded to me after the return has been processed as it's normally only approx £300 which is well below the personal allowance.

If I were to pay myself a dividend of £20k what would I need to do to 'not claim' the PA if this would result in the entire dividend not being taxable? Or have I misunderstood your point?

[jason13]

A non residents IT liability is restricted to IT deducted at source on disregarded income (S811 ITA 2007)
Disregarded income includes savings interest, dividends, pensions and some social security benefits.
So if you do not claim a personal allowance (assuming you are entitled to one) then you have no liability, if however you claim your PA then the dividend will be taxable, a calculation needs therefore to be made to decide whether claiming the PA is worthwhile.

I wasn't aware that claiming or not claiming the PA would make a difference in how tax is assessed. Do you have a link for more information on this?

[LozaACCS]

Jason
I tend not to venture much further than the legislation which is at S811 ITA 2007.
You might find it useful to view INTM269180 or SAIM1170, I have not read either to be honest but they may be easier reading than the legislation