Tax by Country of Residence
Understand the taxation applicable to your exploitation income based on your country of residence
Disclaimer: This guide is for informational purposes only. Consult your tax advisor for personalized analysis.
United Kingdom
Income from exploitation rights is typically classified as miscellaneous income or trading income.
Individual - Income Tax
Standard regime- Personal allowanceGBP 12,570
- Basic rate (20%)GBP 12,571 - 50,270
- Higher rate (40%)GBP 50,271 - 125,140
- Additional rate (45%)> GBP 125,140
For GBP 5,000: If within personal allowance = GBP 0 tax. Otherwise taxed at marginal rate.
Individual - Capital Gains
If classified as capital gain- CGT allowanceGBP 6,000 (2024)
- Basic rate10%
- Higher rate20%
For GBP 5,000 gain: GBP 6,000 allowance means GBP 0 CGT. Favorable treatment!
Company (Ltd)
UK limited company- Corporation Tax (< GBP 50k)19%
- Corporation Tax (> GBP 250k)25%
- Dividend tax8.75% - 39.35%
For GBP 5,000: Corp Tax = GBP 950 (19%). If distributed: additional dividend tax on shareholder.
Tax Treaties
No double taxation
Bilateral tax treaties eliminate double taxation. You are only taxed in your country of residence.
No withholding tax
Article 7 of treaties: exploitation income is only taxable in the investor's state of residence.
Tax credit
If withholding tax were applied at source, you would receive a tax credit in your country of residence.