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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15845
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am a UK citizen permanently resident in Austria. I have a

Customer Question

I am a UK citizen permanently resident in Austria. I have a brokerage account in the UK that gets about 20k of dividends. I have no other UK income.
Who gets the tax first? Do I pay first to Austria then offset the Austrian tax against my UK tax liability or vice-versa. Austrian tax is much higher than UK.
What forms do I need to submit apart from the UK self assessment form? Where is the Austrian tax entered on the SA form?
Thanks
Chris
Submitted: 1 year ago.
Category: Tax
Expert:  Nicola-mod replied 1 year ago.
Hello,
Thank you for contacting JustAnswer.co.uk.
It was brought to our attention that you asked a tax question about Austria, where we do not have active professionals. As much as we would like to assist you, we have to be honest and say that the best we can do is maybe to provide a legal Internet researcher who might be able to find your answer. We realize that option is not ideal, and we always want to provide our customers with the best possible answer.
At this time, we'd like to give you the option of leaving your question open. Keep in mind that you're never obliged to accept an answer that you're not satisfied with, and you can try it out before you accept. Or, we can close your question page for you, if you prefer.
Please let me know how you’d like to proceed,
Nicola
Customer: replied 1 year ago.

Well it's really about UK tax. So far only one out of three questions I have asked could be answered.. please cancel the question

Thanks

Expert:  Nicola-mod replied 1 year ago.
Hello,
If you think it is more UK tax, then I can try it in the UK tax category if you like?
Thank you,
Nicola
Customer: replied 1 year ago.

Sure, let's try that.

Expert:  TonyTax replied 1 year ago.
Hi.

Are the dividends you receive UK company dividends?
Customer: replied 1 year ago.

Hi Tony,

They are almost all overseas companies and no tax was deducted at source.

I also have some dividends from a few UK companies which was subject to a 20% withholding tax (this tax paid I offset against my Austrian taxes).

Thanks

Chris

Expert:  TonyTax replied 1 year ago.
Thanks.

Can you tell me how long you have lived in Austria please?
Customer: replied 1 year ago.

24 years ...

I opened the brokerage account a couple of years ago. Other than that I have no other UK sources of income and no ties to the UK apart from citizenship. I visit relatives about 2 weeks a year typically.

Thanks

Chris

Expert:  TonyTax replied 1 year ago.
Thanks.

Leave tbis with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
Hi again.

You should refer to the notes here and here.

As you are non-UK resident, you are only liable to UK tax on UK source income. The fact that you have a UK stockbroker who holds shares in non-UK companies as a nominee does not make them liable to UK tax. If you were resident in the UK, you would be entitled to a 10% tax credit for foreign dividends paid by companies in countries with which the UK has a double tax treaty. As a non-UK resident, your UK tax liability on UK dividends is restricted to the tax credit. You could receive £100,000 in UK dividends but you would not have a UK tax liability beyond the notional 10% tax credit assuming you had no other UK income.

Your country of residence is Austria so any UK tax paid would be offset against your Austrian tax liability on the same income, not the reverse. You would not, therefore, show Austrian tax paid in a UK tax return unless you were resident in the UK.

Based on what you've told me, I don't believe that you need to be completing a UK tax return if your only UK source of income is UK dividends. The 10% tax credits are not repayable in any event.

I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15845
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and 2 other Tax Specialists are ready to help you
Customer: replied 1 year ago.

Many thanks for the comprehensive response and links

Chris

Expert:  TonyTax replied 1 year ago.
Thanks.

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