Guernsey Company Prospectus says no income tax on dividends due to credit?

Hi, I am a UK basic rate tax payer who will exceed my dividend allowance so will usually pay 8.75% on the remaining dividends. However a Guersney based company I am invested in mention the following in their prospectus: --------------------------------------- Taxation of Dividends: Withholding Tax: The Company is not required to make any withholding from payments of dividends for or on account of UK tax. Tax Liability for Individual UK Shareholders: UK resident individual Shareholders who receive a dividend from the Company will generally be entitled to a tax credit equal to one-ninth of the dividend payment, depending on the size of their shareholding, which can be set against the individual’s income tax liability on the dividend payment. Such UK resident individual Shareholders will generally be taxable on the total of the dividend payment and the tax credit (the “gross dividend”), which will be regarded as the top slice of the UK Shareholder’s income. The tax credit will discharge the individual’s liability to income tax on the gross dividend, except to the extent the gross dividend falls above the threshold for higher rate income tax. --------------------------------------- So am correct that if I declare this on my foreign income, I can apply a tax credit equal to 1/9 of the dividend?

Hi shamusj909,
The double taxation treaty between the UK and Guernsey, does not include provisions relieving diviends, interest or royalties.  https://assets.publishing.service.gov.uk/media/5c470999ed915d38b0437c54/2018_Guernsey-UK_Double_Taxation_Agreement_in_force.pdf.  This means that no relief can be claimed for tax paid in Guernsey.
Thank you.