Sweden: Taxation under Sweden-UK treaty of dividends covered by UK foreign income and gains rules (Tax Court advance ruling)
Swedish taxing right of 5% of gross amount of dividends
The Swedish Tax Court on October 30, 2025, issued an advance ruling on the taxation under the Swedish-UK tax treaty of dividends received by Swedish individuals resident in the UK who receive dividends from Swedish companies that are covered by the new UK rules for taxation of foreign income and gains (FIG).
Background
The UK in 2024 replaced the rules for so-called "non-domiciled individuals" and "remittance" with a new system for taxation of FIG, under which individuals resident in the UK who have FIG may be subject to special tax rules during a transitional period of four years.
Tax Court's preliminary ruling
The Tax Court determined that because the Sweden-UK income tax treaty does not contain any special provisions on the UK FIG rules, the right to tax is allocated according to the usual articles on income and capital gains. Thus, if a person liable for tax in Sweden has income covered by the UK FIG rules (and thus does not pay any UK tax on that income), it must be taxed in Sweden with the limitations contained in the treaty. For dividends, the Swedish taxing right is limited to 5% of the gross amount.
Read a December 2025 report (Swedish) prepared by the KPMG member firm in Sweden