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HMRC internal manual

Savings and Investment Manual

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HM Revenue & Customs
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Deduction of tax: yearly interest: ‘place of abode’ of recipient

Meaning of ‘place of abode’

ITA07/S874 (1)(d) requires deduction of tax from a payment to a person ‘whose usual place of abode is outside the United Kingdom’. This phrase is distinguishable from the concept of ‘residence’, and is to be interpreted as follows.

Individuals

An individual’s usual place of abode is outside the UK if he or she usually lives abroad, unless that arrangement is temporary.

Companies

A company whose main place of business is outside the UK will usually have its usual place of abode abroad unless it is resident here.

But a non-UK resident company that has a UK permanent establishment that is within the charge to corporation tax does not have a usual place of abode abroad.

Trustees

Trustees, including personal representatives, have a usual place of abode abroad if each trustee, considered as an individual or a company as the case may be, has a usual place of abode there. So if one trustee does not have a usual place of abode abroad, neither does the trust.