IR issues note on withholding tax

The UK has issued guidance to intermediaries on the EU"s savings tax directive, which requires income funds to impose a withholding tax or pass on information about their clients. The Inland Revenue guidance note comes ahead of rule changes expected to be introduced in the UK Budget. The note requires UK investors using offshore funds with at least 15% of holdings providing interest to report a client"s share of the income to the Inland Revenue. But the directive, which was passed last June, requires all member states to impose a withholding tax or allow national tax departments to exchang...