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Posted Mon, 23 Sep 2024 14:24:11 GMT by usuktax
I am US citizen living in UK. I own some US Bond ETFs. I know US will tax the interest as dividends and UK will tax the same interest as income. But I assume I can get some partial foreign tax credit in UK for the tax that I paid in US as dividends. Is that right?
Posted Wed, 02 Oct 2024 07:12:21 GMT by HMRC Admin 19 Response
Hi,
Yes, you will be able to claim a foreign tax credit, for tax deducted in the USA. This needs to be declared in the foreign section of the tax return. The UK will tax bonds as income and equities as dividends.
Equities, bonds and commodities are subject to Capital Gains Tax on disposal.
Thank you.

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