HMRC reroutes foreign underlying-tax rate requests to BAI team

UK groups claiming double-tax relief for foreign underlying tax in control cases must send rate-agreement requests to a new team. A request to agree the underlying tax rate under INTM164440 should be sent to the Base Protection Policy Team in BAI, replacing the previous route to the CTIAA Underlying Tax Group in NottinghamGOV.

The procedure applies where relief for underlying tax is claimed in control cases.GOV That includes a UK company controlling at least 10% of voting power in a foreign companyGOV under TIOPA 2010 sections 14 and 65 or an equivalent double-tax agreement provisionGOV, where the foreign rate is determined centrally. Dividends into the UK can combine many elements whose quantification depends on foreign accounting and tax rules alongside complex UK legislation, so claimed rates require central agreement.

The memo seeking agreement must provide foreign income computations and underlying-tax calculations taken from the computationsGOV, the name and address of the agent or company officer for correspondenceGOV, details of the UK company's percentage shareholding in the dividend payerGOV and, if held, copies of the payer's accounts, tax documentation and dividend resolutionGOV.

Case officers do not need to open enquiries at the submission stageGOV but should advise if an enquiry has been opened for other reasons. Officers should not enter into correspondence with the claimant company or its agents about the underlying-tax calculation.GOV The specialist team will ask the company or its agents directly for material needed to establish the rate where necessary.

Officers will receive back the material described at INTM164460, with worked computation examples from INTM164470 onwards. Previous guidance encouraging groups to submit calculations directly and referring advice requests to the old team under Statement of Practice COP 10 no longer appears on this procedure page.GOV

Requests for pending or planned control-case claims should be sent to the Base Protection Policy Team in BAI with computations, shareholding details and accounts where held, with a contact for correspondenceGOV, while the specialist team requests further material directly and officers do not correspond on the calculation.

The legal basis is TIOPA 2010 sections 14 and 65 with equivalent treaty provisions, and HMRC International Manual INTM164440 with INTM164420, INTM164443, INTM164460 and INTM164470.