Income Tax (Trading and Other Income) Act 2005 section 399

Tax treated as paid on distributions received by non-UK resident persons

Section 399 sets out the rules for how income tax is treated on company distributions received by individuals or entities who are not resident in the United Kingdom.

• The section applies where a non-UK resident person receives a company distribution that forms part of their income for a tax year
• The non-UK resident is treated as having paid income tax at the dividend ordinary rate on the amount or value of the distribution
• The income tax deemed to have been paid under this provision is not repayable — no refund can be claimed
• The provision does not apply to persons who are entitled to a tax credit (even if that tax credit has a nil value)