The library collection includes many key works for the interpretation and application of double taxation treaties, as well as technical titles relating to international tax disputes related to double taxation treaties and strategic tax planning through double taxation treaties. You may have to pay taxes, both in the UK and in another country, if you are resident there and have income or profits abroad, or if you are not resident and have income or profits in the UK. This is called “double taxation”. We will explain how this may apply to you. Determining the position of the person`s “contractual residence” is essential to determine whether it is possible to do so and how to apply a double taxation treaty, given that this is the country of contractual residence that generally assumes the taxing rights. For the purposes of this Article, we consider a person to be resident for tax purposes in the United Kingdom and another country, although there are double taxation treaties between two countries. As a rule, they always benefit from relief, even if there is no agreement, unless the foreign tax does not correspond to UK income tax or capital gains tax. Our collection includes numerous articles and books on double taxation, international taxation and residence issues. A double taxation convention effectively terminates national law in both countries.
For example, if you are not resident in the UK and you have UK bank interests, that income would be taxable in the UK under national law as UK income. However, if you reside in France, the double taxation treaty between the UK and France states that interest should only be taxable in France. This means that the UK must give up its right to tax this income. In this situation, you would be entitled to HMRC (in practice, this would normally be done in a self-tax return) in order to exempt the income from UK tax. You will probably need to seek professional advice if you are in a situation of double taxation. To find an advisor, you will find help on our website. Certain types of UK visitors receive special treatment under a double taxation treaty, such as foreign students, teachers or government officials. In another scenario, a double taxation treaty may provide that income that is not exempt is calculated at a reduced rate. For more information, see help sheet HS304 “Non-residents – Relief under double taxation treaties” on GOV.UK.
If you reside in two countries simultaneously or if you reside in a country that taxes your worldwide income and you have income and profits from another country (and that country taxes that income on the basis of what it originated in that country), you can move towards the same income in both countries. This is called “double taxation”. You only pay capital gains tax if you get a profit from British or country property. They don`t pay it for other British assets, such as.B British stocks. For assets that you don`t tax, you usually don`t have to claim – but you should review the corresponding double taxation treaty. Two countries enter into double taxation treaties (also known as double taxation treaties) that set out the tax rules when it comes to a tax country of both countries. It is much more common to use the services of a qualified accountant who is experienced in applying for tax relief through double taxation treaties. Fees vary depending on the complexity of a person`s personal circumstances, in almost all cases, tax savings exceed the costs of using an accountant – and they can be sure to pay the right amount of tax with absolute confidence. Finally, be aware that some countries, such as Brazil, do not have a double taxation agreement with Great Britain. If so, you may still be able to claim a one-sided tax break with respect to the foreign tax you paid. .