The Snake Keeper Blog

Another common situation of double taxation is that a person who is not resident in the United Kingdom but who has income from the United Kingdom and who remains fiscally resident in his country of origin. Determining the position of the person`s “contractual residence” is essential to determine whether it is possible to do so and how to apply a double taxation treaty, given that this is the country of contractual residence that generally assumes the taxing rights. A double taxation convention effectively terminates national law in both countries. For example, if you are not resident in the UK and you have UK bank interests, that income would be taxable in the UK under national law as UK income. However, if you reside in France, the double taxation treaty between the UK and France states that interest should only be taxable in France. This means that the UK must give up its right to tax this income. In this situation, you would be entitled to HMRC (in practice, this would normally be done in a self-tax return) in order to exempt the income from UK tax. For the purposes of this Article, we consider a person to be resident for tax purposes in the United Kingdom and another country, although there are double taxation treaties between two countries. Since the foregoing proposal is acceptable to the Government of New Zealand, I have the honour to confirm that your Excellency`s note and this reply are considered to be an agreement between the two Governments on this matter, which will enter into force at the same time as the entry into force of the Protocol.