Double tax treaties and agreements update, 6 November 2023

Read our update on key developments in this area since June 2022. HMRC has also made several administrative changes to the Double Taxation Treaty Passport Scheme (“DTTPS”) which is widely used by overseas lenders to ensure UK withholding tax is deducted at the correct rate under the relevant double taxation treaty. 

The tax treaties and related documents between the UK and the following countries have been updated:-

• Czech Republic;
• Slovak Republic;
• Cyprus;
• Chile;
• Kyrgyzstan;
• Guernsey;
• Germany;
• Luxembourg;
• India;
• Isle of Man;
• Ukraine; and
• San Marino.

Other specific developments of note are set out below:-

• Use updated form DTTP1 to apply for or renew a Double Taxation Treaty passport;
• A new UK-Luxembourg Double Tax Treaty was signed in June 2022 and has not yet entered into force;
• In June 2022, HMRC published a policy paper setting out its change of view on the interpretation of the residence articles in 16 double taxation agreements;
• Use updated form Canada/Individual to apply for relief at source or claim a repayment of UK Income Tax;
• Use updated form US-Individual 2002 to apply for relief at source or to claim repayment of UK Income Tax;
• The UK and Brazil signed a Double Taxation Agreement in November 2022 which has not yet entered into force; and
• Use updated form DTTP2 to tell HMRC about a 'passported' loan.

Changes to the Double Taxation Treaty Passport Scheme (“DTTPS”)

HMRC has updated the contact details (both postal and email) for the DTTPS. A number of changes have also been made to the scheme’s terms, conditions and guidance document.

HMRC is no longer be reminding passport holders that a passport is due to expire. Previously HMRC guidance  set out that HMRC would write to existing passport holders three months before the passport was due to expire to request completion of a DTTP1 renewal application form. From 20 October 2023 the guidance was updated and now says that HMRC does not issue reminders when a treaty passport is due to expire.

The following guidance has therefore been updated accordingly:-

• Claiming Double Taxation Relief for companies and other concerns; and
• Double Taxation Treaty Passport Scheme: terms, conditions and guidance.