DT Agreements: France - Income from a UK source paid to a resident of France: UK dividends paid to a resident of France - portfolio investor
The DTA (see Article 9) provides for the payment of the excess of UK tax credit after retention of 15% of the aggregate of the UK dividend plus the tax credit. But see INTM343520 about UK dividends paid on or after 6 April 1999.
See INTM350570 for information about claims by French Pension Funds (caisse de retraite).
The anti-dividend stripping provisions (see Article 9(5)) apply where the French company owns 10% or more of the class of shares from which the dividend is paid. However, the article does not allow payment of tax credit to a company that controls 10% or more of the voting power in the UK company. This means that you will only have to make dividend stripping enquiries in exceptional cases where the following conditions are met
- the shares were acquired after 21 October 1987 (the date of publication of the Protocol)
- the claim is for dividends on non-voting shares where the claimant holds more than 10% of them
- the claimant does not control 10% or more of the voting shares.
See INTM343550 for an explanation of dividend stripping.