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HMRC internal manual

International Manual

Double Taxation applications and claims: arrears of tax: Points you need to consider

What you need to consider

In any case where there is collectable UK tax you should liase with DMB and agree an appropriate course of action.

Tell DMB

  • the relevant date from which relief under the DTA is due (for example, the date on which the claimant took up residence in the DT country)


  • that the UK income tax deducted from relievable income after that date is available to set against the debt.

If a settlement has been reached and you have a claim to repayment of tax, you can make the set off from the repayment. Write to the claimant to tell them that you have done this.

If a settlement has been reached and you have an application to relief from tax at source, ask DMB whether they want Personal Tax International to allow the relief at source under the DTA. If the debt has not yet been settled, you will need written confirmation from DMB that you should withhold relief at source so that tax continues to be deducted from the income. Write to the applicant saying that DT relief is due from the relevant date but that the income will continue to be paid with UK income tax deducted until such time as Personal Tax International is told that the outstanding arrears of tax have been paid. You should keep the case under review and allow relief at source when the debt has been recovered.