20 Oct How to apply for a Tax Residence Certificate
What is a Tax residence Certificate?
A Tax Residence Certificate is an official document issued by HM Revenue & Customs (HMRC) that confirms an individual or a company is resident in the UK for tax purposes for a specific period.
It’s mainly used to prove UK tax residency to foreign tax authorities, especially when claiming relief under a Double Taxation Agreement (DTA) between the UK and another country.
Who needs a Tax residence certificate
A tax residence certificate is usually needed when:
- You are a UK tax resident but have income from another country (e.g. dividends, royalties, pensions, or interest), and
- You want to avoid double taxation by claiming relief under a tax treaty between the UK and that country.
The foreign tax authority will often ask for this certificate before granting reduced withholding tax or exemption.
Especially for our Greek clients who live and work in the UK and wish to switch their tax residency in Greece, the Greek tax authorities need a tax residence certificate from HMRC. In order HMRC to issue the correct certificate, the taxpayer must declare any foreign (Greek) income received in the period for which the certificate is requested, even if it’s a small amount of bank interest.
How to apply for a tax residence certificate
The application can be made online through gov.uk (see link below). There are 2 ways to apply online.
- Complete the online form with all details and submit it through gov.uk.
- Taxpayers who are registered for self-assessment, can apply online using their HMRC login details.
https://www.gov.uk/guidance/get-a-certificate-of-residence
Alternatively, you can use RES1 form which is available in gov. uk and post it to HMRC.
It takes around a month (2-4 weeks) for the certificate to be posted to the taxpayer’s home address.
Information contained in a tax residence certificate
A certificate typically includes:
- Name and address
- National Insurance number
- Confirmation that you are resident in the UK for tax purposes
- The tax year(s) or period covered.
- HMRC’s official stamp and signature
Often, HMRC will not issue a tax residence certificate but a Letter of Confirmation of residence. In case the taxpayer has not declare any foreign income, HMRC will issue a letter of confirmation of residence.
It’s important to note that every UK taxpayer with foreign income (more than 2000 gbp) must submit a self-assessment tax return annually.
Foreign tax authorities usually request HMRC documents legalised with apostille.
If you need assistance or someone to take care of it for you, just contact us!