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Posted Tue, 19 Dec 2023 18:45:32 GMT by
Dear HMRC, I am writing to you to request clarification on the withholding tax liability of my UK company for payments made to foreign copyright holders for the use of media content that does not have UK IP. I have been reading that there is no withholding tax on payments made by our UK company in the operation of leasing (for 10 years) and selling and purchasing media content (series and films) without UK IP from the copyright holder (a country outside the UK). However, I could not confirm this from the HMRC website and the HMRC forum portal. We are a UK company and we purchase the rights to series and films from overseas producers and make payments on a NET basis. We would appreciate your help in determining whether we have a withholding tax liability in the UK due to royalties due to selling to customers and/or purchasing from overseas suppliers 2-)In the new year, if all the rights of the media content (series film), i.e. ownership (IP rights), are taken over by our UK company under a contract, will this contract create an obligation to pay withholding tax? Our aim is to purchase the series completely from the overseas producer, transfer it to our customer on the same day with the IP contract, and earn a commission in between. The customer who purchases this right will sell these films worldwide (without region/platform restrictions). We could not confirm whether we have a royalty tax liability in a contract within this scope from the relevant notice letters of HMRC. We would appreciate your help on this matter. I would appreciate your assistance in this matter. Sincerely,
Posted Thu, 04 Jan 2024 12:00:31 GMT by HMRC Admin 20
Hi ECHO,
General guidance on the deduction of withholding tax on royalties can be found at INTM630000 - Royalty Withholding.
The definition of a royalty can be found at INTM630300 - Royalty Withholding: Definition of a royalty.
Guidance on intellectual property royalty payments can be found at INTM630220.
You may be able to obtain further advice by contacting the Large Business Double Taxation Treaty Team using the contact details on this link - hClaiming Double Taxation Relief for companies and other concerns.
You should also seek professional advice.
Thank you.

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