Tax on UK Dividends

What is the position on Tax deducted from UK Dividends

I was charged the top rate 42% on the Gross amount of the dividend from a UK company on my 2004 tax return.
In previous years, I know you could claim a credit from the Irish Rvenue of something like 50% - subsequently I remember that I had to fill out a form, get it stamped by Revenue and send it off to the Uk to get a refund.
I thought we had a double taxation agreement with the UK
Is there any way to get a refund?

I always assumed that one got a credit from Irish Revenue in respect of any UK dividend witholding tax (DWT) paid and you were then just liable for the difference between that and whatever rate of income tax you were paying. I also assumed that the dividend counterfoil including details of UK DWT paid was sufficient for obtaining the relevant credit. Did you declare the dividend gross or net of UK DWT with a note that you were doing the latter?


Have you queried this with Revenue?

If you receive a dividend from a UK co. of €100, 10% DWT will be deducted, not 50%.

€90 (the net amount) will then be taxable in Ireland. There is no entitlement to recover uk tax credit.

There was a form pre 99 called an IRL Individual (I think) for reclaiming UK tax credits but the system has changed since then.

So basically what people are saying is if you are on the Irish top rate of 42% the Irish and UK tax authorities between them take 47.8% of your UK dividend income. Is there no comeback on this?

It seems bizarre.

I thought that the Ireland/UK double taxation agreement allowed on to either (a) recover UK dividend witholding tax or (b) get a credit for this so that one's Irish liability was reduced accordingly? If this is not the case now was it ever the case? Is of any relevance?

Ham slicer is correct as far as I know.

Is it only now that people realised that dividend getters are screwed?

I suppose its only a matter of time before the Revenue announce a 'look back' going back 100 years!

Ham Slicer is indeed correct. The assessment is based on the cash amount received exclusive of any tax credit in respect of dividends received post 5 April 1999.

Under the terms of the Ireland/United Kingdom Double Taxation Agreement, the dividend may be taxed in the UK at a rate not exceeding 15% of the gross dividend (i.e. inclusive of the tax credit), however under UK domestic law, this liability will be reduced to an amount equal to the tax credit which is attached to such dividends. This credit currently stands at 1/9th. The Irish tax resident recipient of the dividend will in effect suffer UK income tax equal to the tax credit attached to the dividend post 5 April 1999, with no entitlement to a repayment of the tax credit. The net dividend received will be subject to Irish income tax in full.

For example:
Gross Dividend received €100
Less UK Tax of -10
Net Dividend received 90
Irish tax @42% -37.8
Actual dividend 52.2

That's where OnDeBanks gets his figure of 47.8%... 10+37.8

OK - thanks for the clarifications.

How do you find out what exchange rate you use on a tax return for UK Dividends? I read somewhere else on the site that the Revenue have standard exchange rates for given years but all I could fing on their site are exchange rates for customs transactions [broken link removed].[broken link removed]

Have a look on here

[broken link removed]

Left hand column go to exchange rates. Take an average over the year or the exchange rate on the date of the dividend - whichever is best for you.

Thanks Ham Slicer.