Consultation on Simplifying Treaty Relief from Withholding Tax on Interest Paid Overseas

This consultation details the current processes for obtaining treaty relief available under the UK’s network of Double Taxation Agreements in relation to the obligation to withhold amounts representing income tax from payments of interest overseas.

The intention is to identify options to meaningfully simplify the administration of the available relief, to make things simpler for taxpayers whilst maintaining robust safeguards against tax avoidance.

This will be of particular interest to those who are regularly involved in cross-border financing, or who have experience of the existing processes of seeking treaty relief from HMRC through existing processes (such as Double Taxation Treaty Passport, Directions to make payments at the treaty rate, claims for relief).

We propose to hold a virtual Roundtable event on Thursday 3 September 2026 to discuss your initial views on this consultation prior to submission of written responses. We are keen that the consultation is informed by views from a wide range of stakeholders as no decisions have been taken on whether or how to reform the current regime and we would welcome your representations.

Please register your interest by emailing simplifyingtreatyreliefconsultation@hmrc.gov.uk by close of business on Wednesday 26 August 2026. Further details shall be provided to those registered closer to the event.

We would ask that you limit participation at the Roundtable to 2 individuals per firm or body to keep numbers in attendance workable.