Disregarded Income

Dear Sir/Madam, RE. https://www.gov.uk/government/publications/non-residents-and-investment-income-hs300-self-assessment-helpsheet/hs300-non-residents-and-investment-income-2022#non-residents-and-investment-income I am always a non UK tax resident, I have shares from a UK company which holds a few buy to let properties to generate letting income. I get dividends of around 20000 pounds per year and no other uk-source income other than this. Do I have to pay UK dividend tax for this? Is this "disregarding income"? Thank you very much. Kind regards LT

Dear Sir/Madam, Sorry for the typing mistake. Should be "disregarded income" instead of "disregarding income". Thank you, Looking forward to your kind reply. Kind regards LT

Hi,

Disregarded income is savings and investment income (dividends and stock dividends from UK-resident companies, interest, purchased life annuity payments, deeply discounted securities, distributions from unauthorised unit trusts, transactions in deposits), annual payments, and certain types of pension income, social security income, and certain payments made through UK brokers.

The effect is that the liability of a non UK resident in respect of savings and investment income is limited to the income tax deducted from it or treated as deducted or paid in respect of it, at the savings rate, dividend rate, or basic rate, as appropriate, or the tax credit it carries.

These sources of income are taxable in the UK and need to be included in any calculations of tax liability. Where an income tax liability arises, then the lower of the Income Tax liability or tax deducted from disregarded income is used. 

Thank you.               
 

Dear Sir/Madam, Thank you for your response. Please excuse my frankness but it seems like that you did not address the query directly. Can you please clarify if the dividend to a non-UK tax resident from a BUY-TO-LET company is disregarded income or not? thank you very much for your clarification. Kind regards 

Hi,

Yes, buy to let dividends paid to non UK residents would fall into the disregarded income category. You can see guidance here:                   

SAIM1170 - Savings and investment income: non-residents

Thank you.

Dear Sir/Madam, Thank you for your kind response. Regards LT