Thank you for the reply. Is that a definitive "yes"? Unfortunately I need to get back to my UK accountant asap on this. As you can imagine writing to HMRC could take weeks for a reply.
Also what do you mean by claims should be made to the receiving office?
Looking forward to your reply.
I believe that answers my question thank you.
FYI. I am the sole director (owner) of the limited company. My UK based accountant actually requested this information from me as they are not tax consultants and just want confirmation from myself.
My name is XXXXX XXXXX and I am afraid dividend tax is never refundable, as its a notional tax that deducted - (means that is not actually tax that has been paid to HMRC)
Although this amount can used as a tax credit when other income is received and tax has been suffered - , it will never create a tax refund (even for non residency, or non use of full personal tax allowances or if taxed is owed on other income)
See link here from HMRC websitehttp://www.hmrc.gov.uk/taxon/uk.htm#5
And scroll down to "Can you claim the tax credit if you don't normally pay tax?"
This will save you wasting additional accountancy costs which will result in the same response. I am sorry the news is not more favourable
Thank you for jumping in. So are you in agreement on my first question taht I can draw dividends out of the UK company free from tax when resident abroad in SA?
On the second part which you responded to. Does that mean that I can use 10% of value of the divends paid as credit which I can then use for any income tax payments?
What happens if that 10% amounts to more than what is actually due on income tax? Can I reclaim that? I suspect not
Thanks and looking forward to your reply.
Hi Sam, Keith.
Just to let you know. I am closing the company down and want to withdraw the funds. Based on the below article even being a non-resident abroad I still have to pay income tax on a salary withdrawn.
Also if I withdraw the funds as dividends and the company is closed down, what happens to the 10% i leave in the company accounts?