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HMRC internal manual

International Manual

From
HM Revenue & Customs
Updated
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UK residents with foreign income or gains: certificates of residence: letter of confirmation

As stated at INTM162020-30, customers will occasionally ask HMRC for confirmation that we regard them as a resident of the UK for purposes other than claiming relief from foreign taxes under the terms of a Double Taxation Agreement (DTA). For example, some countries require confirmation that that person is regarded by HMRC as a resident of the UK before they can start trading in that country. Customers may also want HMRC to confirm that we regard them as UK resident so that they can claim relief from foreign taxes which they might be entitled to under the domestic law of the foreign state or EU law (such as under the EU Interest & Royalties Directive) rather than under the terms of the UK’s DTA with that other state.

If a customer requests confirmation that HMRC regards them as being a resident of the UK for any purpose other than claiming benefits under a DTA, a ‘letter of confirmation’ should be issued instead of a Certificate of Residence (CoR).

The difference between a CoR and a ‘letter of confirmation’ is that a CoR is issued solely for the purpose of claiming benefits under a particular DTA. If a customer requires a CoR, they will be asked to provide the information listed at INTM162020 and HMRC will consider whether the customer is entitled to treaty benefits in accordance with the guidance at INTM162030-90 before issuing the CoR.

If a customer requires a letter of confirmation, the Officer will not need to check whether the customer fulfils the conditions of any DTA. They will only need to check that they can verify the statements which they are being asked to make.

The standard form of words to use with a letter of confirmation should be as follows:

For individuals and companies

THIS IS NOT A CERTIFICATE OF RESIDENCE FOR THE PURPOSE OF CLAIMING BENEFITS UNDER ANY DOUBLE TAXATION AGREEMENT WITH THE UNITED KINGDOM

I confirm that to the best of HM Revenue & Customs’ knowledge and belief [name & address/registered office of customer] as at [date] is a resident of the UK for tax purposes.

Date

Office stamp……………………………………….Name and signature of officer

For partnerships with UK resident partners only

THIS IS NOT A CERTIFICATE OF RESIDENCE FOR THE PURPOSE OF CLAIMING BENEFITS UNDER ANY DOUBLE TAXATION AGREEMENT WITH THE UNITED KINGDOM

The partnership of …………………………… is not itself resident in the UK for tax purposes.

However, I certify that to the best of HMRC’s knowledge, the individual partners in …………….. as at [date] are resident in the UK for tax purposes.

Date

Office Stamp Name and signature of Officer

For partnerships with UK and non-UK resident partners

THIS IS NOT A CERTIFICATE OF RESIDENCE FOR THE PURPOSE OF CLAIMING BENEFITS UNDER ANY DOUBLE TAXATION AGREEMENT WITH THE UNITED KINGDOM

The partnership of …………………………… is not itself resident in the UK for tax purposes.

However, I can confirm that the individual partners that are listed below are resident in the UK for tax purposes. There are other partners in the partnership who are not resident in the UK. Details of those partners can be obtained from the Managing Partner at the following address: ….

-–-–-–-–-–-–-— List of UK Partners -–-–-–-–-–-–-–-—

Date

Office Stamp Name and signature of Officer

For trusts

THIS IS NOT A CERTIFICATE OF RESIDENCE FOR THE PURPOSE OF CLAIMING BENEFITS UNDER ANY DOUBLE TAXATION AGREEMENT WITH THE UNITED KINGDOM

I certify that to the best of HM Revenue & Customs’ knowledge, the Trustees of [Name of Trust]……..……………. as at [date] constitute a ‘body of persons’ resident in the UK for tax purposes.

Date

Office Stamp……………………………………………………………………. Name and signature of Officer

The wording in the main body of the letters above can be tailored to meet the specific requirements of the customer but the Officer must check that any statements they do make are, to the best of their knowledge, correct.

To help ensure consistency (particularly with regards to issuing letters for the purpose of claiming benefits under certain EU Directives and domestic laws), any request to amend the form of words as above should however be referred to CTISA Business International, Foreign Profits Team.