Interest payable by a business is generally subject to deduction of basic rate (20%) income tax unless the recipient is a UK company or financial institution.
Royalties on UK patents, copyrights, designs, trademarks, brand names and certain other qualifying annual payments are generally payable after deduction of basic rate (20%) income tax. Tax does not have to be withheld if the payer reasonably believes that the recipient is entitled to relief under the relevant double tax treaty.
The UK does not impose withholding tax on dividends.
Rents paid to a non-UK resident landlord are subject to deduction of basic rate (20%) tax unless an application to have the rents paid gross under the ‘Non-Resident Landlord Scheme’ is accepted by HMRC.
Sportsmen, entertainers and other performers can be liable to UK tax on earnings from performances in the UK. Where they are, tax at the basic rate (20%) of income tax may be withheld from payments to them or their representatives.
Reduced or zero rates of withholding taxes may apply under a double tax treaty if an appropriate claim is made and accepted by HMRC.
Payments of interest or royalties by a UK company to a company resident in another EU Member State may be made free of withholding tax under the EU Interest and Royalties Directive if conditions are met and an appropriate claim is made.