Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 09 Oct 2023 13:12:40 GMT by
Hi, I have a question regarding the need for self-assessment where foreign income is taxed exclusively by another country under a DTA. For example, with regards to income from a German Kommanditgesellschaft (KG). Under Article 7(1) of the DTA with Germany, I understand that business profits (which this would presumably be - correct me if this is wrong) are only taxable in the state in which the enterprise is based, i.e., in Germany in this case. From the DTA, the self-assessment registration form (which refers to "TAXABLE foreign income") and HMRC Guidance SA263, I understand that because the DTA gives exclusive taxing rights to another country, no self-assessment is required. Please could you confirm that this is correct? Thanks
Posted Mon, 16 Oct 2023 12:32:23 GMT by HMRC Admin 19

Where a DTA gives the other country exlusive right to tax the income, and, or gains, they will not be taxable in the UK.  

In the interests of full disclosure of your worldwide income, you would only mention the income, and, or gains in the freehand additional information box 19 on SA100.

Thank you.
Posted Mon, 16 Oct 2023 12:56:20 GMT by
Thanks for the response. To put the question differently - is there any REQUIREMENT to do a self-assessment to report worldwide income in box 19 (i.e., if I am not otherwise required to do so)? As mentioned, the self-assessment registration form and HMRC Guidance SA263 suggest not. Thanks.
Posted Thu, 19 Oct 2023 09:44:27 GMT by HMRC Admin 25
Hi M,
If the DTA gives exclusive taxing rights to another country, no UK tax is payable and so no relief will be available.
If a DTA applies to your circumstances in this way, you are encouraged to provide further details in the ‘any other information’ section of form SA100 (page TR7)
Thank you. 
Posted Thu, 19 Oct 2023 10:09:34 GMT by
Thanks. For the avoidance of doubt, I understand that I am encouraged to provide further details, but that this is not strictly speaking necessary. If this is incorrect - and provision of further details is legally required, please clarify this. Thank you.
Posted Tue, 24 Oct 2023 14:28:42 GMT by HMRC Admin 32

Although this income is not taxable in the UK, it is still technically world-wide income, so, in the interests of full disclosure, you may choose to mention it in the additional information box 19 on SA100.  

Thank you.

You must be signed in to post in this forum.