John TheKind

Thank you for your answer. The shareholder S described in the first message is not exactly "not UK resident". The shareholder S is the UK tax resident by the virtue of passing Statutory Residence Test by testing positive on Automatic UK Test, however he does claim remittence basis. Could you please clarify if under these circumstances any tax in the UK is liable on such dividends.

Thank you for the confirmation. Could you please let me know if the same holds, i.e. no tax liability in the UK on dividends, in scenario 1 if the company C pays out the dividend from a UK bank account.

Thank you for your response. Just wanted to double-check on the scenario 1: It means that the fact that the company is located overseas prevails the fact that it's tax resident in the UK and hence there's no tax liability in the UK on dividends, provided remittance basis is claimed and the dividend is never remitted to the UK. Please confirm that my understanding is correct.

Good morning, For the situation described below, could you please advise on the following 2 scenarios: situation: A company C is incorporated in a country A, outside of the UK. The company C is tax resident in the UK. The company C pays out dividends. A shareholder S is the UK tax resident and is eligible for remittance basis. scenario 1: The shareholder S receives their dividends from the company C to their bank account in a country B, outside of the UK. The shareholder S claims remittance basis and never brings the monies to the UK or use it in or for any benefit related to the UK. Please confirm that that no tax is due in the UK on that dividend payment because S claimed remittance basis and never remitted money or any goods or services derived from these funds. scenario 2: The shareholder S doesn't claim remittance basis, receives dividends into their British bank account. Naturally, tax is due in the UK. Could you please advise if in the Self Assessment it should be reported under the UK section “Interest and dividends from UK banks and building societies” because the company C is tax resident in the UK or under “Dividends from foreign companies” because the company is incorporated in the country A, outside of the UK.