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HMRC internal manual

International Manual

HM Revenue & Customs
, see all updates

DT applications and claims : foreign dividends and interest payments

Payments of foreign dividends and interest - from 1 April 2001

The Paying and Collecting Agents schemes were abolished for payments that are made after 31 March 2001. UK paying and collecting agents (mainly banks and stockbrokers) are no longer required to deduct income tax when paying or collecting foreign dividends or interest payments.

From April 2001 all interest on quoted Eurobonds is paid gross. The revised definition of quoted Eurobond (ICTA88/S349(4)) means that bonds no longer have to be issued in bearer form to fall within the definition and for interest to be paid free of withholding tax.