Tax on dividends for companies registered in Guernsey

JBC_2

I hold shares (via Selftrade) in F&C UK Real Estate Investment trust.

As this trust is registered in Guernsey, do I have to pay tax on the dividends I receive ?

I’m a standard UK income tax payer.

Many thanks for assisting me with this query.

Aquamania

JBC wrote: »

I hold shares (via Selftrade) in F&C UK Real Estate Investment trust.

As this trust is registered in Guernsey, do I have to pay tax on the dividends I receive ?

I’m a standard UK income tax payer.

Many thanks for assisting me with this query.

http://www.hmrc.gov.uk/manuals/dtmanual/dt8606.htm

booksurr

and what the above means is yes you have to pay tax on any dividends you receive in the UK since you are a UK taxpayer and therefore liable to tax on your worldwide income. If you keep the money offshore and do not receive it in the UK in an attempt to avoid tax then you are in a can of worms and should seek professional advice asap

if the Guernsey company meets the very specific conditions set out in the tax treaty then and only then would you be able to claim a tax credit against the tax suffered in Guernsey. The chances of that happening are likely to be infinitesimal otherwise the company would not base itself in a tax haven to start with

noh

booksurr wrote: »

.................
if the Guernsey company meets the very specific conditions set out in the tax treaty then and only then would you be able to claim a tax credit against the tax suffered in Guernsey. The chances of that happening are likely to be infinitesimal otherwise the company would not base itself in a tax haven to start with

The dividend is not taxed in Guernsey
The OP will be able to claim a 10% tax credit to offset UK tax due. Therefore if he is a standard rate tax payer no further tax is payable.
That is precisely why many investment trust companies are based in Guernsey/Jersey

I successfully claim the tax credit for my dividends from another F+C property trust, FCPT, also based in Guernsey at the same address, via my annual self assessment.

http://www.hmrc.gov.uk/manuals/saimmanual/saim5102.htm