A client (in the UK) had a time share with a US owned company which he now wants to sell.
The US company have told him they will be deducting a 2% witholding tax, does anyone know if and how he can get this back?
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Possibly...
The standard US FIRPTA withholding tax rate is 10%; but this can be reduced on application to the IRS. This is presumably why 2%.
During 2015, the client will need to file a US income tax return Form 1040NR for the 2014 calendar year. The client can then claim a personal exemption and any itemized deductions so may end up with a refund at that stage.
Any gain would naturally also be reported on the 2014/15 UK tax return.
David Treitel | Managing Director | American Tax Returns Ltd
The Old Exchange, 12 Compton Road, London, SW19 7QD
Tel: 020 3542 6330