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Tax treatment of UK dividends

to non-Uk shareholders

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I am in the process of setting up a UK company for a client. 3 of the 4 shareholders were born in, live in and have always lived in Peru. When the UK company pays dividends to the Peruvian shareholders is there a UK withholding tax? Will they have to report the dividends on form CT61?

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By Coops
20th May 2019 16:10

No, there is no UK withholding tax on dividends. No CT61 reporting requirement for dividends.

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By Montrose
21st May 2019 17:03

I agree with Coops. The areas I would be looking at in addition are:-
1] If the Peruvian interests are held directly by a trust, then the trust rate of tax would apply.

2]If the company is not a trading company then IHT would apply on a transfer of the shares- it may be wise for the Peruvian shareholders to make UK wills. or to invest via an offshore holding company

3] If the company is "property rich" the Peruvian shareholders could be liable to UK CGT on a disposal of the shares.

There is no double tax agreement between the UK and Peru

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