Disregarded Income for Non-Residents: Are UK Dividends Taxable?

When it comes to UK tax, things can get complicated if you live abroad but still receive income from the UK. One area that often causes confusion is whether UK dividends are taxable for non-residents.

The answer lies in a key concept: disregarded income.

What is disregarded income?

For UK tax purposes, certain types of income are classed as “disregarded income” if you are non-resident. This means that even though the income arises in the UK, it is not chargeable to UK tax.

Examples of disregarded income include:

• UK dividends
• Bank interest from UK sources
• UK Government securities (gilts)

(Reference: HMRC – Disregarded Income for Non-Residents)

Dividends and non-residents

If you are non-resident for UK tax purposes, dividends from UK companies are disregarded income. That means HMRC will not charge you UK tax on these dividends.

However, that doesn’t necessarily mean they are tax-free. Many countries operate a residence-based tax system, meaning that dividends may be taxable in the country where you are tax resident.

Do I still need to file a UK tax return?

If your only UK income is disregarded income (e.g., dividends and bank interest), you typically do not need to file a UK Self-Assessment tax return.

But if you have other types of UK income — such as:

• Rental income from UK property
• Employment income from UK work
• Capital gains on UK land/property
  then you may still need to register and file with HMRC.

Key takeaway

✔️ UK dividends are not taxable for non-residents.
✔️ Always check the rules in the country where you live, as they may still tax your dividend income.
✔️ If in doubt, get professional advice to ensure you remain compliant both in the UK and your country of residence.

✅ At Taxes Done Right Ltd, we specialise in helping landlords, expats and non-residents understand the UK tax system. Whether it’s property income, Self-Assessment, or cross-border tax planning, we can make sure your taxes are done right.

📞 Call us on 0161 710 1901
📧 Email: Tax@TaxesDoneRight.co.uk
🌐 Visit: www.taxesdoneright.co.uk