What is a ‘DT-Individual’ Form?
The form ‘DT-individual’ is for UK non residents who want to claim back a repayment of UK income tax.
The DT form is for an individual person only who is a resident of a country with which the UK has a double taxation treaty. The form is for tax relief on UK income from pensions, interest, purchased annuities and royalties. If you need to reclaim UK income tax as a non resident for any other reason, a Self Assessment tax return has to be completed.
If you already have to complete a Self Assessment tax return, any tax relief you are entitled to from the income covered in the DT-Individual form will need to be processed through the Self Assessment return.
The Tax Code DT, or Form DT, is an abbreviation for Double Taxation.
If you are resident in one country and have income from another then you may be required to pay tax in both countries to comply with taxation laws – hence, ‘double taxation’.
What are Double Taxation Treaties?
The UK government has treaties with a vast number of countries so that people can avoid this double taxation trap. The terms of these double taxation treaties vary between countries. You should check the exact conditions that apply concerning your income from the UK and your country of residence.
HMRC publishes a Digest of Double Taxation Treaties which gives a summary of the tax relief available under each treaty. Just visit www.gov.uk DT digest to do your own checks.
What can I do using Form ‘DT-Individual’?
Form DT-Individual allows you to apply for UK income tax relief at source as it applies to royalties, interest paid on UK earnings, purchased annuities and pensions. It can also be used to request a repayment of tax you have already had taken off your income. Obviously this only applies if a Double Taxation Treaty exists between the UK and your country of residence. There are some country specific forms, so make sure you have the right one before you start!
What evidence of residency do I need to claim tax relief under a DT Treaty?
In order to claim tax relief from UK income tax under a Double Taxation Treaty, you will need to provide evidence of your residency. This means that the tax regulators within your country of residence consider that your status is ‘for tax purposes’, as it specifies within the relevant DT Treaty.
Some treaties require that you are subject to tax in your country of residence and have paid tax on the income to them before you can claim UK tax relief. The Digest of Double Taxation includes details about this condition.
The process of providing this proof of residency varies between countries. In some countries, you send them your DT Individual Form; they stamp it and return it to you or send it directly to HMRC. Other countries are unwilling to provide an official stamp but you can request a certificate to prove that you are resident ‘for taxation purposes’.
The devil is, indeed, in the detail – but it’s worth paying attention to avoid paying the same tax twice.
