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Tax status of UK dividends received by overseas client

Q: My client is a non-UK resident individual that receives a substantial amount of dividends from a UK Ltd company. Is this subject to UK tax and does a tax return need to be filed?

A: A non-UK resident individual can be taxed in one of 2 ways on the amount of dividends received and the most beneficial method will apply.

Under the normal route, the dividends will be disclosed on the Self-Assessment Tax Return and the Personal Allowance may be claimed (see boxes 15 and 16 on SA109 notes to see if available as a non-resident).