This screen is accessed via the data input tab within the tax return. Use this section to add any cross-border royalty payments. If the company is a UK company and made cross-border royalty payments after 1 October 2002, and reasonably believed that the recipient of the royalties would be entitled to treaty relief on any tax deducted, select the +New payment… button, a new window opens which needs to be completed

  • ‘Name of recipient of the royalty‘ enter the name of the recipient
  • ‘Address line 1 to 4‘ enter the full address of the recipient
  • ‘Postcode‘
  • ‘Type of royalty payment made‘
  • ‘Gross amount of royalty paid’
  • ‘Agreement under which relief made’ select from the drop down list either ‘Interest and Royalties Directive exemptions’ or ‘Country with Double Taxation Agreement with UK’
  • ‘Exemption / country‘
  • ‘Rate of tax deducted from payment‘
  • ‘Amount of tax deducted from payment’
  • ‘Additional notes‘

For additional information please refer to https://www.gov.uk/hmrc-internal-manuals/international-manual/intm400090