UK government 'FOTRA' securities

This section covers interest payments on UK Government securities issued on FOTRA ('Free Of Tax to Residents Abroad') terms.

Contents

Who can claim?

Interest payments on UK Government securities issued on FOTRA ('Free Of Tax to Residents Abroad') terms are exempt from UK income tax where the beneficial owner of the security is not ordinarily resident (if a company, not resident) in the UK.

Interest payments made on or after 6 April 1998

Two important changes took effect on 6 April 1998. From that date

  • all UK Government securities have FOTRA status, irrespective of the terms of issue of the security
    and
  • interest payments on holdings of all registered gilts are generally made without deduction of UK tax, unless the account holder has asked the Bank of England to deduct tax.

If tax has been deducted from an interest payment on a FOTRA security, and you are the beneficial owner of the security, you may claim repayment of the tax.

Interest payments made before 6 April 1998

Before 6 April 1998, FOTRA status applied only to certain UK Government securities. We have prepared a list of the FOTRA securities in issue at 5 April 1998. This list is attached to form A1 as the fourth page of the form, which is in PDF format. To view a PDF document you must have Adobe Acrobat Reader installed on your computer. If you require this material in large print or Braille please contact HMRC Residency.

The paperwork: what form do I use?

Please use form A1 if you need to make a claim to repayment of tax deducted from an interest payment on a FOTRA security. Notes on the form explain how to make your claim.

Please note that the form is in PDF format. To view a PDF document you must have Adobe Acrobat Reader installed on your computer.If you require this material in large print or Braille please contact HMRC Residency.