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Posted Tue, 05 Sep 2023 17:30:27 GMT by
I received dividends and earned capital gain from the sale of the shares that I held overseas. Do I get the benefit of the dividend and capital gain allowances in this case? Also, does the dividend tax-free allowance or capital gain tax-free allowance depend on my income tax?
Posted Thu, 07 Sep 2023 12:36:30 GMT by HMRC Admin 32
Hi,

After converting the dividends to pounds sterling, this is reported in the tax return on SA106. The sum of UK and overseas dividends receive the annual tax free dividend allowance £1000.00 for the 2023 to 2024 tax year. This will reduce to £500.00 in the 2024 to 2025 tax year. After the dividend allowance is deducted, any remaining dividend income is taxed at the appropriate rate.
After you have converted your overseas capital gain to pounds sterling, this is reported in your tax return on SA106 and SA108. Your combined UK and overseas capital gain is has the annual exempt allowance of £6000.00 in 2023 to 2024 and £3000.00 in 2024 to 2025, deducted. Any remaining gain is taxed at the appropriate rate.

Thank you.

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