Non-residents UKTax Return submission on Dividends

Tax Form Submission Requirements for Non-resident's (Dividends Income only)

Didn't find your answer?

Good afternoon.

I was led to this forum and it already taught me HRMC Forum responses are not always accurate. I would appreciate your help with this doubt related to a relative who wants to buy and hold shares of a UK company listed on LSE (Nothing related to Real Estate), through a Non-UK broker.

I searched site's posts related but I was not able to find one specific to UK Reporting Requirements. When receiving dividends of UK Source, is an non-resident individual entitled to submit a UK Tax Return?

This being that he/she does not receive a HRMC notification to do so. I understand this dividend is Unregarded Income and deemed deducted at source (not refundable) but I do not know if the individual is still entitled to fill a UK Tax Report. I tried to understand 811 ITA but I am afraid my english is not good enough.

Some more info: Individual is not a UK national, has never lived in UK, neither worked for a UK based company or owned Real Estate there. There would be no other income of UK source Individual is not a director of a UK registered company UK income would be less than £100,000.

From what I read it seems there would be no need to submit a UK tax return and the individual is a non-resident for tax purposes. It is just that I prefer to check if I am missing something related to dividends that may trigger infractions and penalties.

Thank you.

Replies (13)

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Replying to Tables Force:
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By w4sk1r1
10th Jan 2024 12:46

Thank you,

Searches like the one you posted brought me here and to HRMC forum.

Fortunately I read this forum's posts and learned HRMC Forum answers can be wrong.

I found multiple conflicting answers on the web. The ones here are the ones I trust.

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By Wanderer
10th Jan 2024 07:08

What do you mean when you keep saying 'entitled'?

UK law is generally written around whether a return is required or not.

In some circumstances, when not required, a return can be submitted voluntarily.

Can't see anything in your scenario that requires a tax return. If there was then every overseas investor in UK shares would be required to file a UK tax return.

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Replying to Wanderer:
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By w4sk1r1
10th Jan 2024 12:07

Thank you Wanderer,
I should have written "required" instead of "entitled"

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By Justin Bryant
10th Jan 2024 09:38

The full correct answer is actually far from simple. I recall RT once gave the full correct answer here if you do a search (it was not short & simple).

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Replying to Justin Bryant:
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By w4sk1r1
10th Jan 2024 12:13

Thank you Justin Bryant,

RT replies in other posts are the ones that taught me not to trust HRMC Forum and, as you say, that these matters are not simple.

I searched the forum and reviewed around 20 posts related to dividends and non-residents but I might have missed the one you mention.

Is it this one by any chance?: https://www.accountingweb.co.uk/any-answers/tax-on-disregarded-income-no.... RT Mentions in other posts to check: "starting with my post of 20/09/23".

Any hint that leads me to RT answer would be really helpful

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By JCresswellTax
10th Jan 2024 09:57

Speak to a professional, pay for written advice.

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Replying to JCresswellTax:
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By w4sk1r1
10th Jan 2024 12:28

Thank you JcreswellTax

If this proves to be really difficult I will tell my relative to look for a professional. It is more a kind of a long time wish she has to invest in UK companies she trusts.

In any case, finding a UK expert in my country (South America) for small investors would not be easy and I am afraid I do not know anyone close who can recommend me one in UK.

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Replying to w4sk1r1:
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By FactChecker
10th Jan 2024 17:47

I guess the definition of a "small investor" is in the eye of the beholder ... but "UK income (from holding shares of a UK company listed on LSE) would be less than £100,000" suggests a rather substantial investment in shares.

So, unless "less than £100,000" actually means a *much* smaller income, some professional advice would be only sensible - to the extent that if you can't find it then you shouldn't proceed.

With regard to your original question ... as Richard has just posted below, there is no reason why a UK Tax Return would be needed IF the facts are precisely as you've outlined and IF you haven't forgotten to mention anything that later turns out to be relevant. Why did you think there might be a need?

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Replying to FactChecker:
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By w4sk1r1
10th Jan 2024 18:15

I am sorry, it is my mistake not to clarify this on my first post.

This $100k were extracted of a website that listed it as one of: "6 key criteria used to determine whether you need to submit a tax return" - Non-Resident UK. The Criteria is: "Was your UK taxable income over £100,000?".

Total annual income of UK source would not reach that figure at all. The total investment in shares would be would be in the low five figures.

Sorry again and thank you.

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Replying to FactChecker:
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By w4sk1r1
11th Jan 2024 13:26

Apologies, I forgot to answer your question: Why did you think there might be a need?

I found conflicting answers on the web regarding my doubt. some of them said that: " A tax report submission is likely to be required" (Non-residents and dividends of UK companies).

This is an example: "You are not considered a tax resident of the UK, but you received income from the UK (for example you are a non-resident landlord and have UK rental income, pensions, DIVIDENDS, UK based employment) this will be subject to UK tax laws and it is likely you will be required to submit a tax return".

Fortunately I also found this forum and trusty answers.

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By richard thomas
10th Jan 2024 17:45

Based on the information you have supplied the answer is simple – your relative (don’t you know your relative’s gender? “he/she”) need do nothing as there is no tax liability in the UK.

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Replying to richard thomas:
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By w4sk1r1
10th Jan 2024 18:21

Thanks a lot Richard Thomas, I really appreciate it.
Regarding the gender; it was a dumb decision not to specify the sex, later on I realized that saying "she" did not hurt anyone's privacy.

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