Dividends paid to overseas on UK company

Is dividend tax payable in UK on a dividend paid out from a UK company

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My clients are EU nationals.  They own a small limited company through which they produce design work.  During the final year of their companies existence (y/e 31/3/17) they returned to the EU.  They now wish to close the company down in the UK, they have taken the remaining monies in to their bank accounts.  If this is declared as a dividend, would they be liable to declare the dividend in the UK, given that they have not received the money there?

Many Thanks in advance.

Replies (4)

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By johngroganjga
26th May 2017 17:01

You are causing confusion by anticipating the UK's departure from the EU, which despite all the talk has not happened yet.

So when you say "EU nationals" do you actually mean "citizens of an EU country other than the UK"?

And when you say "returned to the EU", do you actually mean "left the UK"?

Assuming I have deciphered your question correctly, it's just a matter of where they are tax resident when they receive the dividend isn't it?

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By Jar1
26th May 2017 17:23

Hi yes, apologies, I should have said "to another EU state". Yes I believe that would be the case, but wanted to make sure that in the event of clearing down funds from income raised in the UK there was nothing there to say that it would be taxed again. Corporation tax on profits has been paid in the UK though. Thanks.

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By Matrix
27th May 2017 08:26

The dividend may be taxed in the country in which the shareholder is resident.

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Replying to Matrix:
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By Dick Stastey
27th May 2017 11:11

It might be taxable in more than one jurisdiction. We don't have enough information.

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