Residence Certificate: Certify Your Residence and Get Tax Relief Overseas

Residence Certificate: A way to certify your residence in the UK

Not everyone is based solely in the UK. Some people, companies, and charitable organisations operate overseas and earn revenue in foreign countries. Entities paying taxes in the UK for an income earned elsewhere are eligible for tax relief in those countries. To take advantage of tax relief overseas, you need to certify residence in the UK. This article deals with the certificate of residence and how to obtain it.

Who Can Request a Certificate of Residence (CoR)?

You can obtain a residence certificate if these two conditions are met:

• • You reside in the UK for a significant portion of the time
• • A double taxation agreement exists in the country where you earn an income

HMRC will only send a certificate of tax residence for those eligible for treaty benefits through a double taxation protocol. The overseas authority will then decide if you can obtain tax relief for the taxes paid in the UK.

Information Required By The HMRC

When applying, you need to tell the HMRC the following information:

• • The reason for requiring a residence certificate
• • Which double taxation protocol you wish to use
• • The applicable income type
• • The time period for which you require the CoR
• • If the double tax agreement requires it, confirmation is necessary that:
• - You paid UK tax on all income you need to claim
• - You benefited from the income

If a UK tax residence is required for anytime after 5 April 2013 while you have not completed a tax return, you must provide the HMRC with the following details:

• • The total days resided in the UK for the required tax year. If the number of days spent is less than 183 for any particular tax year, you must tell the HMRC how you are a UK resident through the SRT test.
• • The date of arrival or leaving the country. If you came to or departed the country for the year you require a tax residency certificate, you must provide the dates you started or ended the residency under SRT's split-year guidance.

How To Make an Application

There are many individuals and organisations who can apply for a residence certificate. Different documentation and procedures are in place depending on the application. The process is outlined below.

Sole Traders and Individuals

An application can be made through the online portal, or by emailing the form. Agents representing a sole trader or an individual can make an application online.

Online services require a Gateway userID and password. It is possible to obtain a userID if you don't have an account already. If the other nation supplies a letter of confirmation to certify CoR, it needs to be sent to:

A Company

If you are a company and the Business Service (Large) deals with your tax, you must request a CoR through the RES1 service. Where there is an advanced order request for CoR, the Business Service (Large) can accept a request before the accounting period is complete (which is in December).

Companies requiring a pre-order, need to email their request to contactus.largebusinesslondon@hmrc.gov.uk. If local compliance deals with a company's tax, pre-order requests must be made through the RES1 service. Should the overseas authority give you physical paperwork for the HMRC to deal with, send it to the Corporation Tax Department.

Pension Schemes Which Are Registered

Complete form APSS 146E and post it to the address listed on APSS 146E. Should the other nation provide an application to certify UK residence, post the documentation to the HMRC along with APSS 146E.

If another person is making an application for you, forms APSS 146D and APSS 146C need to be completed in addition to forms APSS 146E. All 3 forms must be posted to the relevant address listed on the form APSS 146E. These forms are not required if the go between permission is already received or if they are approved to handle CoR.

Other Ways to Apply

There are other ways in which you can apply:

• • Registered Pension Schemes: unit trusts or insurance companies may require the certification of residence for people to make a pension claim these organisations arranged.
• • Partnerships (Including Lloyd's Syndicates): Use the online RES1 for the requests. If you are involved in a partnership that has a Customer Coordinator or a Manager for Compliance, make the request to them.
• • Insurance Companies: Requests must be sent to the company's Corporation Tax Office or Customer Compliance Manager that handles their tax.
• • Unit Trusts: Complete the CISC9 form. Post the completed form to the address listed on it. If the other nation supplies a form to confirm your UK residence, include it alongside CISC9.
• • Pension Schemes That Are Non-Registered: Make all requests to:

HMRC

I.T.T.P Trusts

1st Floor, Ferrers House

Castle Meadow Rd

Nottingham

Nottinghamshire

NG2 1BB

United Kingdom

• • Collective Investment Schemes: Complete the CISC9 form and post it to the relevant address listed on CISC9.
• • Trust: Send a letter to the HMRC at the address mentioned above.
• • Charity: To make a request, complete form RES1 and send it to the HMRC at the following address:

Charities, Savings and International 2

His Majesty’s Revenue & Customs

BX9 1BU

Public Body

• • Public Body: To make a request, complete the RES1 form.

Tax Relief Through the Certificate of Residence

Individuals, companies, and many other organisations can apply for a UK certificate of residence. The documentation helps obtain tax relief in other countries if you paid taxes on foreign income in the UK. CoR is a great example of the ever-increasing cooperation between countries worldwide.