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Where Taxpayers and Advisers Meet

Dividends taxation for non residents.

Dan199018
Posts:1
Joined:Wed Jan 08, 2020 1:56 pm
Dividends taxation for non residents.

Postby Dan199018 » Wed Jan 08, 2020 2:21 pm

Hi

I have a client who is a non resident, who has a company registered in the UK. They only have dividend income from UK sources.

From my reading it is my understanding that there is two options here :-

1/- Claim the personal allowance & have UK income taxed at appropriate rates.

2/- Don't claim the personal allowance & instead the investment income (dividends) will be treated as disregarded income & it would therefore not be taxable at any level of dividends declared.

Option 2 however does not apply to investment income connected to a trade in the UK through a permanent establishment.

My questions are :-

1/- Does the fact it is their own company affect the above options in anyway

2/- Would they fall under the permanent establishment caveat. I don't believe they would, as they are not just a UK resident company because of this fact, the company is actually a UK registered company as previously stated.

Thanks

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Dividends taxation for non residents.

Postby maths » Thu Jan 09, 2020 2:13 pm

1. No

2. No


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