A certificate of residence (CoR) is used to help individuals and organizations obtain tax relief on foreign income where they are classified as UK residents and there is a Double Taxation Agreement (DTA) in force with the country concerned.
You can claim tax relief in another country if you have a CoR and pay tax on your foreign income in the UK.
We discuss some important FAQS below:
Who can apply for a Certificate of Residence?
You can apply for a CoR if:
- – You are classified as a resident of the UK
- – There is a double taxation agreement with the country in question
What happens if I have already paid the tax?
You may be able to get a refund if you have already paid the tax.
Typically, the Overseas Authority dealing with your claim will ask HMRC to certify that you are a resident of the UK in line with the double taxation agreement.
HMRC will not send a CoR if you are not entitled to treaty benefits under the double taxation agreement.
Afterward, the relevant Overseas Authority decides if relief from foreign taxes can be granted.
What information should you provide to HMRC when applying for a Certificate of Residence?
You need to provide the following information to HMRC when applying for a CoR:
- – the reasons for needing a CoR
- – the double taxation agreement under which the claim is being made
- the type of income you wish to make a claim for and the relevant income article
- – the period you need the CoR for – if different from the date of issue
- – the confirmation that you are
- the beneficial owner of the income you wish to make a claim for
- subject to UK tax on all the income you wish to make a claim for
if needed by the double taxation agreement.
Will you have to provide the same information if you have not filed a Self-Assessment tax return for that period?
If you need a CoR for a period on or after 6 April 2013 and you have not filed a Self-Assessment tax return for that period, you must also tell HMRC:
- – the number of days you have spent in the UK during the tax year you need the CoR for
- – the reasons for believing that you are a resident under the Statutory Residence Test (SRT) – if you have spent less than 183 days in the UK during the tax year you need the CoR for
- – the date you arrived in or left the UK
- – the date you began or ceased to be a resident according to the SRT split year rules – if you arrived in the UK during the tax year you need a CoR for
What information must the newly incorporated companies who have not yet filed a Corporation Tax Self-Assessment tell the HMRC?
All such companies should tell the HMRC:
- – the name and address of each director and shareholder
- – the reason a company believes it is a resident of the UK (guidance is attached in the international manual at INTM120030)
How can Individuals and Sole Traders apply for a Certificate of Residence?
To apply for a CoR, individuals can:
- – use the online service
- – email this form (no need to sign in to an online account)
- – apply online through an agent applying on behalf of an individual or sole trader
Please note that need a Government Gateway User ID and Password to use the online service.
You can create one when you use the service.
However, if the other country gives you a form to certify residence, you will need to send it to the following address:
Pay As You Earn Self-Assessment
HM Revenue and Customs
BX9 1AS
How can Limited Companies or Partnership apply for a Certificate of Residence?
A limited company or partnership can apply for a Certificate of Residence by filling the RES1 form.
What information should the Limited Companies and Partnerships provide to fill this form?
The company needs to provide the following information to fill this form:
- – Address and Unique Tax Reference (UTR) of partnership or company
- – Reason for the certificate application
- – Type of income the certificate is required for
- – The past period for which the certificate is required
- – The ‘other country’ that requires the certificate
- – From the double tax treaty with the ‘other country’
- The article number dealing with the type of income
- Whether the income must be subject to tax or liable to tax
You will also need the company tax office ID, UTR, and an explanation stating why you believe the company is UK resident (if this is for a new company before its first Corporation Tax return is submitted)
The company form can be emailed to contactus.largebusinessscotlandandni@hmrc.gsi.gov.uk or posted to MUID 854, Large Business S0862, HM Revenue & Customs, Newcastle Upon Tyne, NE98 1ZZ.
Additionally, if you are completing the form for partnership you must also have the following:
- – Full name, address, and UTR of the Managing Partner
- – Full names, titles, and residency status of all partners
The partnership form must be sent to
Pay As You Earn and Self-Assessment
HM Revenue and Customs
BX9 1AS
Where can I find more information on Certificate of Residence?
You can find more information on Certificate of Residence in HMRC’s International Manual which can be accessed here.
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