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Posted Mon, 11 Nov 2024 01:16:58 GMT by lion qui
Hi, I am UK resident (not citizen) and filling self assessment for foreign interest income. There is a Double Taxiation Agreement (DTA) between my country (Turkey) and UK which says: "the tax so charged shall not exceed 15 per cent of the gross amount of the interest". I already paid 20% income tax in my country for this interest income.In this case can I claim complete tax relief for this interest income as the total tax paid already exceeds 15%. Below is the Double Taxiation Agreement (DTA) article: https://assets.publishing.service.gov.uk/media/5a80019ee5274a2e87db7495/turkey-dtc_-_in_force.pdf ARTICLE 11 Interest (1) Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. (2) However. such interest may also be taxed in the Contracting State in which it arises, and according to the law of that State: but where the beneficial owner of the interest is a resident of the other Contracting State the tax so charged shall not exceed 15 per cent of the gross amount of the interest.
Posted Wed, 13 Nov 2024 10:33:04 GMT by HMRC Admin 21 Response
Hi,
Article 11 of the UK / Turkey treaty confirms that as a UK resident, you would have to pay only 15% tax on the interest in Turkey.
If you have paid more, you should claim a refund from the Turkish tax authorities.  
In your self assessment tax return, you can only claim up to 15% of the tax paid in Turkey as a foreign tax credit.
Thank you.

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