Withholding tax

This practice note is a summary of the UK withholding tax rules on payments of interest and certain other payments (such as annual payments, guarantee payments, patent royalties and other royalties).

It considers when withholding arises (including when interest has a UK source and when it is "yearly interest" rather than "short interest"). It also considers exemptions, such as the quoted Eurobond exemption and exemption under double tax treaties. Further, it discusses documenting for withholding tax, including gross-up clauses, and accounting for tax withheld.


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