Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 14 Dec 2023 10:56:28 GMT by Nella
I am a tax resident in the UK and hold listed Chinese and US company shares. When I receive dividend payout from these China companies or US companies, they will charge withholding tax of 10% and 30% respectively. In other words, for every $100 dividend, withholding tax of $10 will be charged by China company and $30 charged by US company for their tax authorities. 1) Do I need to report the dividend income of $90 and $70 to HMRC for self assessment or tax return? 2) If yes for (1), can I claim any tax exemption for these reported income (total $160) as I have already been taxed in China and US? Any max amount of tax exemption?
Posted Tue, 19 Dec 2023 14:44:21 GMT by HMRC Admin 5
Hi

As a UK resident you are taxed on your worldwide income.  
You would report the dividend and the tax paid, as you may be able to claim a foreign tax credit for the foreign tax paid.  
Foreign dividends are declared on SA106 (foreign) and submitted along with the main tax return.  You can find more information on self assessment tax returns at Self Assessment.

Thank you
Posted Tue, 18 Jun 2024 21:51:22 GMT by jj tax
hi HMRC, For 2022/23, I received a dividend payout from a China company of £2381 (after withholding tax 10% £265). I did file on SA106 form below: column A: CHN column B: £2646 (payout £2381 + withholding tax £265) column C: £265 (withholding tax) column E: X (to claim foreign tax credit relief) column F: £2646 However, SA302 tax calculation ignores my request claim foreign tax credit relief, which means I paid both China withholding tax and HMRC double taxed my dividends before £2646 withholding tax. Could you please check I have been double taxed? If yes, how shall I claim back my overpaid tax?

You must be signed in to post in this forum.