asked the Chancellor of the Exchequer whether the relief from the United Kingdom tax on dividends due to United States shareholders under the protocol to the double taxation agreement with the United States of America signed on 17th March will have to be claimed by repayment.
As a general rule, Yes. But the Inland Revenue is preparing, in consultation with those concerned, a scheme under which companies which are willing to do so may be authorised to give relief at source on dividends paid to residents of the United States through approved collecting agencies in the United Kingdom. Similar arrangements will be made for dividends paid by subsidiary companies to United States parent companies. The Inland Revenue will announce details of the arrangements as soon as they have been settled.