It’s a special program that offers a fantastic opportunity for UK corporate borrowers to receive relief from double taxation on their loan interest payments to overseas corporate lenders.
If you’re a company or have a head office located in a country that has a double taxation treaty with the UK, you can apply for a double taxation treaty passport. This applies to overseas corporate lenders who have taken out loans on or after 1 September 2010.
Exciting news! HMRC also extends this passport privilege to US limited liability companies and US corporations that choose to pass corporate income, losses, deductions, and credits to their shareholders for federal tax purposes.
Once your application is processed and approved, your passport status will typically last for five years. It’s worth mentioning that HMRC might occasionally review the scheme’s operations to ensure everything is running smoothly. To stay up to date, the list of recognised passport holders among overseas lenders was last updated on 19 June 2023, featuring an impressive addition of 405 names and the removal of 32.
Don’t miss out on this fantastic opportunity to simplify your tax obligations and ensure fair treatment for your loan interest payments. Take advantage of the Double Taxation Treaty Passport Scheme today!
Explore the Double Taxation Treaty Passport Scheme with Expert Advice from Jones Harris! Contact us for more information here.