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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17610
Experience:  International tax
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Hi,I plan to take a sabatical year. If during the sabatical

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I plan to take a sabatical year. If during the sabatical year I receive a dividend from a hong kong company, as a UK resident how much tax would be payable assuming that in the UK I have no other source of income or salary?

Hello and thank you for allowing me to assist you.

You must declare all your dividends in your Self Assessment tax return after the end of the tax year.

You don’t have to do anything more about tax on your dividends if:

you’re a non-taxpayer

you pay the basic 20% rate of Income Tax

When a company pays you a dividend, you get a ‘tax credit’ worth one-ninth of the dividend amount. You can offset this against any tax you owe. The tax credit is automatically offset against the dividend tax you owe (10%). Just declare any dividends in your tax return, if you complete one. You would not have any tax to pay.

Customer: replied 3 years ago.


But in Hong kong there is no dividend tax. So how would a tax credit be issued by the company and how would the tax office in the UK be informed?

They will be informed when you file your self assessment. The credit will be applied by HMRC.
You just would file and report, but if you had no other income you would not owe tax.
Customer: replied 3 years ago.

Hi ,

thanks for the answers. So just to double check... If I´m a UK resident and my only income is dividends from a Hong kong company ( of say(###) ###-####HKD ) I would not owe tax?

That is correct.
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