Does anyone know the procedure to reclaim witholding tax in full or part on dividends paid by Irich companies to a UK based investor? The shares are held in a 212 ISA account.
Trading212 can do this on clients’ behalf if (and only if) every underlying nominee client is not subject to Irish DWT. T212 would need to apply for Qualified Intermediary status from the Irish Revenue. Since that is unlikely as T212 has such a Pan European (and therefore Irish) audience you need to personally reclaim post payment.
My shares in Medtronic (MDT) suffer a 25% Irish withholding tax on dividends. The UK-Ireland tax treaty says that only a 15% withholding is allowable, and that is therefore the maximum I can claim as a deduction against my 33.75% UK dividend tax. Because of this I effectively pay 43.75% dividend tax on Medtronic dividends.
I have never found an easy way to claim the 10% “over-withheld” amount from Ireland.
Has anyone any suggestion?
I believe the answer to be ‘yes’. Rather than physically claim the monies back, offset the additional with-holding on your Self Assessment under the Double Taxation Treaty rules.
(I am not actually a qualified IFA or tax advisor! DYOR)
@haggis_mince You can only claim credit against UK dividend tax for the withholding rate that is specified in the treaty, which is 15% (Article 11 1b). Notwithstanding that Ireland has withheld a greater amount than the treaty specifies, eg 25%, HMRC says you can still only claim the treaty-specified rate of 15%. If you want the other 10% this can only be recovered by direct applicantion to Ireland. You are not permitted to deduct it from UK tax.
That’s why I used the word “additional”. Offset/claim what you can “under the rules” - so, 15%
Thanks for the info. Much appreciated.