Non-uk resident getting dividend from UK property company

Hi, If a residential property rented out is held under a Limited company (SPV), and the director of the company is non-uk resident. Does the director need to pay UK income tax if getting dividend from the SPV? Thanks.

Hi 
It depends on what the double taxtion treaty says between the UK and whatever country this director lives in.
Thank you. 

Thanks for the reply. From my understanding, dividend from UK companies paid to Non-uk resident can be treated as 'disregarded income' and therefore not liable to UK income tax. Can you confirm if this is correct? See link below: https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim1170 I also found a similar post before (link as below), and HMRC Admin 5 posted 3 months ago that "Individuals who are non resident in the UK are not taxable in the UK on UK interest or dividends received. " It does not mention anything about double taxation treaty. Can you explain a bit more about how double taxation treaty works here? https://community.hmrc.gov.uk/customerforums/pt/d0f9057b-3d87-ee11-a81c-000d3a86dfe6#:~:text=Individuals%20who%20are%20non%20resident,is%20known%20as%20disregarded%20income). Thank you.

Hi Annie Qu,
Thank you for your question.
Please refer to our helpsheet HS300 Non-residents and investment income (2023) which provides more information about non-residents and investment income and how it is charged to tax.  Non-residents are not taxable on UK dividend income but this should still be declared if completing a Self Assessment tax return, for calculation purposes this will show as ‘Non-UK resident’s disregarded income’.
More information about double taxation and investment income can be found in SAIM1170 - Savings and investment income: non-residents.
Thank you.

Hi I'm just looking at this thread and am looking for some clarification, as i'm getting conflicting information. I am looking at potentially retiring outside of the UK and severing all ties with the UK. My buy to lets are within a limited company, as per Annie Qu's query. If i draw all dividends out of the company and close it, will the dividends taken be considered disregarded income and not taxed in the UK? Many thanks in advance.

Hi,

We cannot comment on future events as legislation and, or, plans may change. You can see current guidance here:

Tax on your UK income if you live abroad

Thank you.