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bigduckontax, Accountant
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How does a UK company obtain relief for withholding tax levied

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How does a UK company obtain relief for withholding tax levied on a dividend paid to it by a wholly owned subsidiary in Switzerland? Is the full amount of WHT paid deducted from the UK Corporation tax liability?
Hello, I'm Keith and happy to help you with your question.

The double taxation treaty between the UK and Switzerland provides relief from UK taxation for tax paid in Switzerland. This relief would be claimed through the appropriate year CT600 tax return made by the company. In the event of the relief not appearing on the payment notice issued after the return is made HMRC's attention should be drawn to the matter by means of a letter so that the appropriate adjustment can be made.
Customer: replied 4 years ago.

Hi Keith, can I be clear on this. Is the WHT paid deducted from the UK CT payable (good) or the UK taxable income (bad!)?

It is a credit against CT liability ie a deduction.
Customer: replied 4 years ago.

Perfect, thanks.

Pleased to be of assistance.
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