ARCHIVED: This archived Practice Note provides information on the Withholding Tax exemption that was available for UK source yearly interest payments or Royalty payments made before 1 June 2021 (or in certain cases, before 3 March 2021) to associated EU company recipients. This withholding tax exemption was repealed by section 34 of the Finance Act 2021 with effect for payments made on or after 1 June 2021 or in certain cases, on or after 3 March 2021. This Practice Note is not maintained and is for background information only. For other UK withholding tax exemptions, see Practice Note: Exemptions and reliefs from UK withholding tax on yearly interest.

This Practice Note is only relevant to UK source payments of interest and/or royalties made before 1 June 2021 or, in certain circumstances, before 3 March 2021. For more information, see: Brexit and repeal of UK legislation that gave effect to the Interest and Royalties Directive, below.

The exemption covered in this