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HMRC internal manual

International Manual

From:
HM Revenue & Customs
Published:
9 April 2016
Updated:
27 May 2026 - See all updates

INTM413234 - Transfer pricing: the main thin capitalisation legislation: payments of yearly interest overseas: making and processing claims for treaty relief by payers

Where payers disclose a failure to deduct, they can make a claim to any available treaty relief in the form described below and subject to the rules in TMA 1970 described in SACM3000+.

How to Claim

Claims for treaty relief from a payer following a failure to deduct should be submitted as a claim outside of a return.

HMRC has published a claim form which payers must use to make claims. This, together with any supporting evidence, should be sent to the following email addresses:

  • Payers who have a Customer Compliance Manager (CCM) in Large Business should send the form and any supporting evidence to lbwhttreatyreliefclaims@hmrc.gov.uk and copy in their CCM.
  • Payers whose affairs are dealt with by Wealthy and Mid-sized Business should send the form and any supporting evidence to wmbcwhttreatyreliefclaims@hmrc.gov.uk and copy in their CCM if they have one.
  • Payers whose affairs are dealt with in Small Business and Individuals should send the form and any supporting evidence to sbiwhttreatyreliefclaims@hmrc.gov.uk.

Claims must include:

  • Full name and address of the payer and the lender.
  • Details of the interest payments from which there was a failure to deduct, including payment dates, the sums of interest paid, and any amounts deducted from those payments.
  • Details of the Double Tax Agreement under which relief is being claimed, including the relevant treaty article, the treaty withholding rate claimed and an explanation of how relevant conditions are met.
  • Certification of residence from a tax authority in the lender’s jurisdiction of residence, or an explanation of why one cannot be provided together with other evidence demonstrating the lender is resident in that jurisdiction.
  • Where repayment of tax is sought, evidence that the tax has been paid to HMRC.
  • A written declaration from the lender that they are the beneficial owner of the interest, or an explanation of why one cannot be provided together with other evidence of this fact.
  • A declaration that no amount, or less than the full amount required, was deducted from the relevant payment or payments.
  • A signed declaration by the claimant that the details are correct and complete to the best of their knowledge and belief.  In the case of a company, the declaration must be signed by an officer of the company.

The claim form specifies the information and declarations that must be provided for a claim to be validly made. Where those requirements are not met, HMRC will notify the claimant that the attempted claim is invalid. More information on how HMRC deals with unsatisfactory attempts to make a claim can be found in SACM10010.

Supporting evidence should be provided with the claim as requested on the form. HMRC may request further information or documentation where necessary to establish entitlement to relief.

Valid claims may be enquired into by HMRC to check that entitlement to treaty relief has been sufficiently demonstrated. Cases where the evidence provided is unclear or incomplete are more likely to result in HMRC requesting further information in support of the claim. 

Inaccuracies in claims may result in penalties being charged on the claimant.


Time Limits

Claims made outside of a return are subject to the time limits in Section 43 TMA 1970. This provides that a claim must be made no later than four years after the end of the relevant year of assessment to which it relates.

For the purposes of a claim to treaty relief following a failure to deduct, the relevant year of assessment will be the one in which the requirement to deduct and resulting liability to income tax arose.

Where the payer has suffered tax as a result of a failure to deduct in years of assessment that ended more than four years ago, relief from taxation that is not in accordance with a tax treaty might be obtained under the treaty’s mutual agreement procedure (MAP). Guidance on making an application under MAP can be found in INTM423010+.


Claims involving repayments of tax

Where a claim asks for a repayment of the withholding tax, HMRC will not make a repayment as a result of a treaty relief claim unless it is satisfied, from the evidence provided, that the tax has been paid and the claimant is the relevant party to claim in line with the guidance at INTM413232.