Chapter INTM162110
| Published date | 09 April 2016 |
| Record Number | INTM162110 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
UK partnerships (including English and Scottish LPs and UK LLPs) cannot be resident in the UK for the purpose of most of the UK’s Double Taxation Agreements (DTAs), because they are not themselves liable to tax in the UK. Only in a few limited circumstances, when the DTA specifically states that a partnership can be regarded as resident, such as in the UK/Argentina DTA, will HMRC be able to issue a Certificate of Residence (CoR) in the name of the partnership.
As a result, partnerships are not themselves entitled to claim benefits under most of the UK’s DTAs. However, partnerships will usually be able to claim benefits on behalf of those of its partners who are residents of the UK.
To assist with such claims, HMRC therefore provides a CoR which confirms that whilst the partnership itself is not UK resident, some or all of its partners are.
It should be noted that, with regards to LLPs, references to ‘partners’ below is interchangeable with ‘members’. If requested by the customer, it will therefore be acceptable to replace the references to ‘partners’ in the CoR with ‘members’.
Partnerships with only UK Resident PartnersFor partnerships where all partners are UK resident there should not be a problem as we will, if requested, confirm that although the partnership itself cannot be UK resident the individual partners are, and are therefore entitled to the relevant DTA benefits.
Partnerships with Non-Resident PartnersNon-resident partners are not entitled to the benefits arising from DTAs between the UK and its treaty partners because they are not persons resident in the UK as set out in the residence Article of a UK DTA. But HMRC will, if requested, confirm that although the partnership itself cannot be UK resident, the UK resident partners are entitled to the relevant treaty benefits.
Information requiredAs with any request for a certificate of residence, any partnership requiring a CoR should provide the information listed at INTM162020 as well as:
For partnerships with UK partners only:
- A list detailing the partners’ names with confirmation that each and every partner is UK resident at the date of the request for the CoR.
For partnerships with UK and non-resident partners:
- A contact name and address for the partnership; and
- A list detailing the partners’ names, separately identifying those that are UK resident and those that are not and confirming that each of the UK partners is UK resident at the date of the request for the CoR.
Once the...
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