Tax implications on dividends while temporary non-resident

I have tried reading up on this myself and paying for advice from a personal tax accountant, but I still can't seem to get a straight answer. So, I am hoping the community or someone from HMRC can clear this up for me. I am a director of an LTD company, and I left the UK last year (Aug 2023) and plan to return to the UK after 5th April 2025 - Meet automatic test to be considered a non-tax resident for tax for the full 24/25 year - Looking to claim split year treatment for 23/24 (left the UK Aug 23’) - This means I would be deemed a temporary non-resident for this period as it is less than 5 years - Income taken in the form of monthly dividends and no salary - The business has almost no costs/overheads, and all remaining profits are taken as dividends each month (no profits are left in the business) - All profits/dividends taken should be considered post-departure profits for this purpose - Income for the period also includes some rental income - I plan to return to the UK fully in the 25/26 tax year (post April 5th 2025) Will my dividends or rental income spanning 1st August 2023 to 4th April 2025 be subject to UK tax?

Hi,

Please have a look at the guidance on non resident and UK investment income below regarding disregarded income.

HS300 Non-residents and investment income (2021) 

UK-derived savings and investments, including UK dividends, do not qualify for split-year treatment.

The rules on disregarding these types of income from UK taxation will only apply if you are a non-UK resident shareholder for the entire tax year in which you receive the dividend income.

Thank you.

Ok, so there is no split-year treatment for 23/24. What would this mean for my tax liability for the dividends taken in the 24/25 year? Would this mean that my rental income would be taxed as normal but that dividends would be disregarded income and non-taxable?

Hi,

If you are not tax resident for the whole tax year and you have UK income from property, you would have to declare this in a Self Assessment tax return, along with any investment income, such as bank interest and dividends. This disregarded income is required to calculate the amount of tax payable. You can see more information here:

HS300 Non-residents and investment income (2024)

Thank you.

Again, I am just looking for a simple answer: ignore anything about rental income or any interest, etc - my question is purely about the dividends. If I take dividends this year and I am a non-tax resident for the whole of 23/25, will I be due any tax either this year or in the following tax years? - https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm12700 It's this bit of advice that is confusing me and makes me believe that the dividends I take this year will not be due any UK tax as the dividends are from a close company and are taken based on monthly profits (post departure profits)

Hi Stephen,
Please have a look at the guidance on helpsheet:
HS300 Non-residents and investment income (2024)
UK dividends will be taxable in the UK, but as a non UK resident, they are considered disregarded income.
Thank you.