UK/Germany Double Taxation Relief

Dividends from German companies were received by a UK resident individual 2023/24. It is assumed that withholding tax was deducted. Is it necessary to make a claim for any repayment of withholding tax due from the German authorities before claiming double taxation relief in the self assessment return? If it is, but because of the amount involved and the costs of making the claim, no repayment claim is made, how much double taxation relief can be claimed, if any?

Hi ,
 

You can only claim double taxation relief from a UK /German tax treaty where the source of income is taxable in both countries.  If an income is taxed in Germany, but is not taxable in that country, you have to claim the tax back from Germany.  You are not able to claim a foreign tax credit in that situation. Thank you .

Thank you. Can you please explain what is meant by 'but it is not taxable in that country'? In my case, does it mean not taxable in the UK?Article 10 (1) of the UK/Germany DTA states that dividends paid by a German company may be taxed in the UK and Article 10 (2) states that the dividends may also be taxed in Germany and that the German tax charged shall not exceed 15% of the gross amount if the beneficial holder of the shares is an individual who is a resident of the UK. Does this mean the German dividends are taxable in both Germany and the UK so that foreign tax credit relief can be claimed against the UK tax payable on them and it is not therefore not necessary to claim a repayment from Germany please?

Hi John,
In response to this we can confirm that, that is correct.
Thank you.