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HMRC internal manual

International Manual

DT applications and claims : foreign dividends and interest payments

Additional foreign withholding tax

You may receive claims for repayment of UK income tax deducted from

  • interest payments from Canada
  • dividends from



          -United States of America

You may not be able to repay some or any of the UK tax because the Inland Revenue has to pay over some additional withholding tax to the taxation authorities of one of those countries.

You should refer to Technical Advice Group before payment of any claim for repayment of UK income tax deducted from

  • a dividend paid by a company in



          -United States of America


  • a payment of interest from Canada

Technical Advice Group will provide specific guidance for each claim affected.

The relevant statutory authority is

  • for Canada SI1980/780 for dividends and SI1987/2071 for interest
  • for Netherlands SI1967/1063
  • for United States of America SI1961/985 and SI1980/779

These provisions do not apply to payments made after 1 January 2001 (USA) and 1 April 2001 (Netherlands and Canada). See SI2000/3330.