I hold shares in a company registered in Ireland. They have recently announced their first dividend, and sent paperwork through for non Irish residents to claim exemption from Dividend Withholding Tax (DWT), which is at 20%.
This form has to be signed by HMRC to confirm that I can do this (I've only got until 3 May to get it back, so good luck with that one!).
However, I feel that even if I receive the gross dividend, it will be taxable on my tax return at 20% anyway.
If I don't claim the exemption, the tax will effectively be treated as paid until a double taxation agreement.
Is my prognosis correct? As you may have picked up, I don't deal with foreign dividends often.
As I'm typing this, it makes sense, if i can avoid the hurdle of trying to get certification from the Revenue that would be good.
Any comments appreciated.