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Posted Wed, 18 Sep 2024 11:08:47 GMT by hoose
Hello, I'm a bit confused by the new DTT with Luxembourg, and I was wondering if I could check my understanding, with respect to dividends please. As I read it the new DTT came into force from 1 Jan 2024. The main change is that the 15% rate has been replaced and dividends are now exempt from Luxembourg tax. The remitting company, however, still deducts the 15% withholding tax which presumably is the local tax arrangement. On the dividends before 1 Jan 24 - I claim the tax credit of 15% on my SA. On the dividends after 1 Jan 24 - I cannot claim a tax credit and should report my dividends gross (despite receiving net of Withholding tax) because under the new DTT they are exempt. I then have to claim back the withholding tax directly from Luxembourg using their local form 901bis (which is complicated for a non-tax specialist such as myself, and has to be sent to HMRC first) If this is correct it has significantly increased the admin involved for myself and the tax authorities! this seems strange to me, so I was wondering if I had missed something please?
Posted Thu, 26 Sep 2024 12:03:59 GMT by HMRC Admin 32 Response
Hi Hoose
This forum is for general queries only and is intended to help you self-serve. Unfortunately, we are unable to provide specific advice tailored to individual circumstances or offer any interpretation of the guidance available on GOV.UK:  
Luxembourg: tax treaties
Customers with more complex enquiries often engage the services of a professional advisor or accountant and this may be something you wish to consider.
Thank you.
Posted Fri, 27 Sep 2024 07:17:31 GMT by penbiter
Hi that’s the way I understand it. I filled in miy SA yesterday and if you claim 15% relief it won’t work out tax relief for my entire return. I switched back to no relief and it works. My dividends were deducted to, and will prob leave as they were only about £40 tax.

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