Special withholding tax may have been deducted on certain foreign interest payments arising between 1 July 2005 and 31 December 2015 under the EU Savings Directive. This article remains relevant as individuals taxed on the remittance basis may remit income to the UK that has suffered special withholding tax.
For background on special withholding tax to a current year see E6.439.
Special withholding tax may affect a current year where a taxpayer uses the remittance basis of taxation (E6.324A and income remitted was taxed under the EU savings directive provisions.
Special withholding tax and local withholding tax
Special withholding tax may have been deducted from an interest payment in addition to any local tax required to be withheld or paid. However, the mechanism for relieving special withholding tax and local withholding tax against the UK tax due on the income is different.
Any local tax suffered can be relieved in accordance with the rules discussed in rules discussed in the rest of this division. See E6.401 for an overview.
Special
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Web page updated on 17 Mar 2025 16:13