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RF 7: General rate for NRWT
or “The standard tax rate for non-resident passive income is 15%”
You could also call this:

“Which dividends paid to non-residents are taxable and at what rate”

When you make a payment of non-resident passive income that is a dividend, you need to pay tax on it. However, this doesn’t apply to all types of dividends. You don’t need to pay tax on investment society dividends, supplementary dividends under subpart LP, fully imputed dividends, or certain amounts paid by foreign investment PIEs to notified foreign investors.

If you do need to pay tax on the dividend, you can work out how much tax to pay by using a simple calculation. You multiply the dividend payment by 0.3. This means the tax rate for these dividends is 30%.

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Next up: RF 9: When dividends fully imputed

or “Explaining how to calculate when a dividend is fully imputed”
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Part R General collection rules
Withholding tax on non-resident passive income (NRWT)

RF 8Certain dividends

  1. This section applies when a person makes a payment of non-resident passive income that consists of a dividend, except to the extent to which the payment is—

  2. an investment society dividend; or
    1. a supplementary dividend under subpart LP (Tax credits for supplementary dividends); or
        1. a fully imputed dividend; or
              1. an amount paid by a foreign investment PIE to a notified foreign investor under section HM 44B (NRWT calculation option) to the extent to which the amount represents the fully imputed portion of a dividend and the related supplementary dividend derived by the PIE.

                1. The amount of tax is calculated using the formula—

                  dividend payment × 0.3.

                  Where:

                  Compare
                  Notes
                  • Section RF 8(1)(c): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 128(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
                  • Section RF 8(1)(e): repealed, on , by section 275(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section RF 8(1)(f): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 128(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
                  • Section RF 8(1)(g): inserted, on (applying for the 2013–14 and later income years), by section 150(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
                  • Section RF 8 list of defined terms CTR additional dividend: repealed (with effect on 1 July 2011), on , by section 128(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
                  • Section RF 8 list of defined terms FDP: repealed, on , by section 275(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section RF 8 list of defined terms foreign investment PIE: inserted, on (applying for the 2013–14 and later income years), by section 150(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
                  • Section RF 8 list of defined terms fully credited for conduit tax relief: repealed (with effect on 1 July 2011), on , by section 128(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
                  • Section RF 8 list of defined terms fully imputed: inserted (with effect on 1 April 2008), on , by section 532 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                  • Section RF 8 list of defined terms notified foreign investor: inserted, on (applying for the 2013–14 and later income years), by section 150(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).