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Claiming back excess dividend tax from Irish co

Irish form for UK individual to claim excess irish tax

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Would anyone be able to advise (if they have been through similar exercise) which Irish form needs to be filed to claim back excess Irish tax (paid 20% but can only claim relief in UK of 15%) for PRIOR dividends received for the last 4 years.  The intermediary stockbrokers are not advising nor offering much assistance in the process.  Here is the title of the form I think applies...Claim for refund of DWT Chapter 8A Part 6 Taxes consolidation Act 1997....  This form seems to suggest I reclaim ALL the dividend tax but I am only looking to claim back excess above the 15% DTA cap....?  is the 5% excess

I can see that the V2A form means the client is noted as UK resident and would be qualifying non resident in the future and just be charged UK tax going forward. It is just the historic dividends I am trying to resolved first of all.    Welcome any knowledge of this process!!

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By Matrix
15th Oct 2019 06:56

I have no knowledge of this process but did some research for you and it looks as if recipients in a country which has a tax treaty with Ireland are entitled to a full refund of the tax so I would complete the form on that basis and also apply for exemption for future dividends.

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Replying to Matrix:
By SteLacca
15th Oct 2019 08:52

OP doesn't indicate whether or not DTR has been claimed on UK SATRs, but may also be amendment there required.

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Replying to SteLacca:
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By Matrix
15th Oct 2019 09:08

Agreed but I just answered the question asked.

If the domestic rate of withholding tax is nil to a UK individual, then does that suggest that the only option is to apply for a reclaim and there is no tax credit for the 15% on the SA?

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Replying to Matrix:
By SteLacca
15th Oct 2019 09:46

I don't see how they could claim FTCR for a deduction that hasn't been made (which would be the effective outcome of a full refund).

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Replying to SteLacca:
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By Matrix
15th Oct 2019 10:23

That isn’t my point. My point is the amount allowed as an FTC regardless of whether a reclaim is made.

If the domestic rate is nil then this is lower than the treaty rate so my point is that the ONLY way to recover the tax is a reclaim.

I don’t really understand the partial reclaim, this would suggest the 15% is creditable but I’m not sure it is.

Thanks for your thoughts.

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Replying to Matrix:
By SteLacca
15th Oct 2019 13:06

Ahh, yes, I misunderstood your comment. My apologies. I'd be very surprised if treaty tax could be claimed a FTC if domestic tax was, in reality, NIL. I haven't checked, but I can't imagine a credit being due for tax not paid.

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Replying to SteLacca:
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By Matrix
15th Oct 2019 16:27

The tax has been paid at 20%. But I think the FTC is nil regardless of whether a reclaim is made.

I wondered if anyone has any view since I have a client with Irish dividends.

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Replying to SteLacca:
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By ABC123Accountant
15th Oct 2019 09:16

Yes correct I need to amend UK returns in question as well

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Replying to ABC123Accountant:
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By ABC123Accountant
15th Oct 2019 09:56

I am claiming 5% excess over the DTA rules for prior dividends and amending overclaim error on uk returns - Irish authorities confirmed this morning that partial reclaim is acceptable, going forward I am applying for full exemption and then just UK tax will apply....many thanks for all input. Just seems a lot of admin back and forth if it all cancels out in the long run!

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Replying to ABC123Accountant:
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By Matrix
15th Oct 2019 16:29

How much did you claim on the returns was it 15%? And sorry do you mean you are reclaiming 5% or 20%? Thanks

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Replying to Matrix:
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By ABC123Accountant
15th Oct 2019 17:50

I claimed 20% just straight from the reports in error so reversing out 5% on the UK returns and claiming back 5% from the Irish authorities. Going forward my client will be registered as exempt to avoid the extra admin of reclaim from Ireland and just pay UK tax on the full dividend.

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Replying to ABC123Accountant:
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By Matrix
15th Oct 2019 18:36

Sorry I have not had a chance to look into the point I raised above but in the foreign notes it seems to say that you can only claim a foreign tax credit if you have applied for exemptions etc in that country. Also if the UK tax is lower than 15%, say 7.5%, then there would be leakage.

Wouldn’t you put the whole 20% on the form?

https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

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