Practical Law UK Glossary 8-107-7508 (Approx. 3 pages)
Glossary
Withholding tax
Tax in respect of (usually) recurring payments at source is sometimes collected by requiring the payer to make a deduction on account of tax before making the payment. This deduction is generally known as withholding tax. It frequently applies to dividends (although not those paid by UK companies), interest and royalties. This liability is often reduced or eliminated under a double taxation treaty. For further details, see Practice note, Withholding tax.