Consultation on Simplifying Treaty Relief from Withholding Tax on Interest Paid Overseas

This consultation details the current processes for obtaining treaty relief available under the UK’s network of Double Taxation Agreements in relation to the obligation to withhold amounts representing income tax from payments of interest overseas.

The intention is to identify options to meaningfully simplify the administration of the available relief, to make things simpler for taxpayers whilst maintaining robust safeguards against tax avoidance.

This will be of particular interest to those who are regularly involved in cross-border financing, or who have experience of the existing processes of seeking treaty relief from HMRC through existing processes (such as Double Taxation Treaty Passport, Directions to make payments at the treaty rate, claims for relief).