INTM368270 - DT applications and claims : foreign dividends and interest payments
Payments of foreign dividends and interest - up to 31 March 2001
Where dividends or interest from abroad, other than foreign bank deposit interest, were paid through a paying agent in the United Kingdom or collected by a banker or similar in the United Kingdom
- ICTA88/S118B required the paying agent to deduct United Kingdom Income Tax
- ICTA88/S118C required the banker or other collecting agent to deduct United Kingdom Income Tax.
Paying and collecting agents were authorised to allow credit automatically for foreign withholding tax on dividends and interest.
An agent who gave provisional relief had to show on the dividend voucher the gross amount of the dividend and how the amounts of tax had been computed. The certificate of deduction of tax will show where credit for foreign tax is allowed, for example
| £ | |
|---|---|
| Gross amount of dividend | 100.00 |
| Less foreign tax deducted at 15% | 15.00 |
| Amount after deduction of foreign tax | 85.00 |
| Less UK tax at 5% on £100 | 5.00 |
| Net amount of payment | 80.00 |