NON-UK RESIDENTS DOUBLE-TAXATION AGREEMENTS (DT)

DOUBLE-TAXATION AGREEMENTS (DT)

The UK is in a unique position whereby it has more Double-Taxation agreements in place that any other country worldwide – 149 at the last count. A DT agreement between two countries effectively sets out the tax treatment for different sources of income and stipulates in which country the income is taxed, or if this income is to be assessed twice. When a DT agreement exists between two countries then you can usually apply for a tax credit against your income so effectively you are not paying the same tax twice. However, sometimes the rate at which you can claim the tax credit is restricted. A DT agreement is a specialist piece of tax legislation that will dictate the exact treatment of taxation across a wide range of issues. 

If you are looking to move or return to the UK and bring back income from on-going employments, bonuses, savings, or investment income, then the DT agreements will be of particular importance to you. Having an understanding of the impact on how each income class will be taxed in the UK, and if foreign tax is also likely to need assessment in addition to the UK position is of vital importance.

At UK Tax Returns we assist clients with complex Residency issues daily. We are versed in a wide range of tax issues that you may be considering ahead of any move either to or from the UK – speak to us today for an initial, no obligation consultation to see how we can assist you further. 

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