We have a client who is long term non resident and the beneficiary of a UK trust. This certifies income to him on an R185 including a majority of dividend income. For 2016/17 and 2017/18 this tax paid on this dividend income and shown on the R185 was not repayable and in effect the tax computations came to a zero. This year the software we use is refunding him the tax on the R185 in a seeming change and i wonder if this is correct?
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Are you showing this as
i)income in possession,
or
ii)income of a discretionary beneficiary?
If the former, check that you are correctly entering the income in the software.
If all the trust income is dividend income then no tax is recoverable as none is paid. The exceptions are if any of the dividend income is from UK REIT's, fixed interest securities or other income not taxed as as distribution
If the latter, then the additional tax rate of tax may be recoverable depending on the personable status of the beneficiary and any DTA between the UK and the beneficiary's country of tax residence
Are you showing this as
i)income in possession,
or
ii)income of a discretionary beneficiary?
If the former, check that you are correctly entering the income in the software.
If all the trust income is dividend income then no tax is recoverable as none is paid. The exceptions are if any of the dividend income is from UK REIT's, fixed interest securities or other income not taxed as as distribution
If the latter, then the additional tax rate of tax may be recoverable depending on the personable status of the beneficiary and any DTA between the UK and the beneficiary's country of tax residence