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Posted Wed, 27 Sep 2023 10:14:08 GMT by nickkaz
Hi, I am a non-resident landlord registered for self assessment. Supposing that I'd like to claim full relief for a type of income according to the relevant DTA (eg. interest), which form should I attach to my return? HS304 form or DT-individual form ? Both forms seem very similar to me for this purpose. What's the difference between these forms, when is one used and when the other?
Posted Mon, 02 Oct 2023 19:49:14 GMT by nickkaz
Could someone please answer my above questions? Thanks in advance.
Posted Thu, 05 Oct 2023 11:03:33 GMT by HMRC Admin 25
Hi nickkaz,
If you are required to submit a Self Assessment tax return, you can choose to complete either form HS304 or form DT-Individual.
If you are not within Self Assessment, please claim relief by completing a form DT-Individual.
Thank you. 

Posted Fri, 06 Oct 2023 13:55:37 GMT by HMRC Admin 25
Hi nickkaz,
As non resident, any interest declared will be classed as disregarded income anyway so you do not need to HS304 or DT form.
You can still choose to submit the HS304 though if you wish for peace of mind.
Thank you. 
Posted Fri, 06 Oct 2023 14:46:50 GMT by nickkaz
I am under the impression that disregarded income (eg. interest), when declared, does not necessarily mean 'untaxed' income. This applies especially when the non resident declares other ('regarded') income too. Example for £35,000 rental income and £1,500 interest: 1) 35,000 rental income - 12,570 personal allowance (eligible non-resident)= 22,430 X 20% = 4,486 1,500 interest - 1,000 personal savings allowance = 500 X 20 % = 100 Total tax bill with 'normal' rules 4,586 Vs 2) 0 tax deducted from interest + (35,000 rental X 20%) = 7,000 (disregarded rules limit without the personal allowance). So the lowest of these sums and the final tax bill would be in the end £4,586. This means that in this case interest is indeed taxed (£100) and that the non-resident should use the HS304 form to claim for the full relief of £1500 interest, if of course the DTA indeed provides for one. Are my above calculations and the subsequent need for an HS304 in this case wrong?
Posted Fri, 13 Oct 2023 12:06:37 GMT by HMRC Admin 13

Disregarded income is savings and investment income from UK bank and building society interest, National Savings and Investments and dividends from UK companies.
If you were a UK resident, then these sources of UK income would be taxable. 
As you are not resident, they are not taxable, but any tax deducted from them is included in the tax calculations and may not be refundable.  Two calculations are required:
The first is with all the income that is taxable in the UK and
The second also include the disregarded income
The tax payable is the lower of the two calculations.
Any tax deducted from the disregarded income is set against the lowest liability and only if there is a surplus will it be refunded.
Have a look at Non-residents savings and investment income (Self Assessment helpsheet HS300)
HS304 Non-residents — relief under double taxation agreements (2020) would allow you to claim back tax paid in the UK on interest from bank and building societies, royalties, most work pensions and annuities.
Thank you

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