Claiming Foreign Tax credit rate

Hi All I’m trying to fill in the foreign tax section of the HMRC online tax return. When I choose Yes in “Do you wish to claim foreign tax credit relief?” I have to chose a % tax rate. I know the amount of tax payable in Australia but to get the % what Income amount do I use ? It might be easier to state some numbers to see what I mean. Assume (not accurate): 8k Australian earned income 5k Australian franking credits on dividends 7k UK income taxable in Australia and UK 35k UK income taxable in Australia but not in UK (pension lump sum) -30k pension contribution in Australia (Also complicating matters in the tax free threshold in Australia of 9k which I think I ignore) My net taxable income (on which I pay tax) in Australia would be 25k (8+5+7+35-30). Is this the amount to use as income in calculating the foreign tax credit % ? So if I pay 5k tax in Australia, the % is 20% ?? Or do I ignore all of the UK income, or the UK non taxable income ? Also, when filling out the section there is a field “Foreign tax taken off or paid: (optional)”. Do I put the tax paid against the particular income in here (as well as in the foreign tax credit area) ? Thanks for any help Ellen

Pls ignore this. I think I understand better now - the tax rate used is that specified in the DTA with Australia and the UK, 10% for interest, 15% for dividends. Thanks

Hi Ellenbf42 F,
Please have a look at the double taxation tax treaty between the UK and Australia:
2003 Australia-UK Double Taxation Convention - in force Updated 31 May 2021
Article 10 covers dividends.
For most individuals the relief rate is 15%.
You can find tax treaties for the UK and other countries on this internet.
Search for 'tax treaties uk / xxxx'.
The FTCR will be up to a maximum of 15% of the Australian dividend received, depending on how much UK tax is payable on all of the dividends in the tax return.
Thank you. 
 

Hello, I am currently a UK resident paying taxes here in the UK to HMRC. I have some shares in an Australian listed company which pays dividends. The dividends come with a "franking credit" as the publicly listed company has already paid corporate taxes. Can I use this franking tax credit when filing my UK taxes? When I was a resident in Australia and paid taxes there, I could. I no longer live in Australia and do not pay taxes there.

Hi vbino69 Knipmeyer,
Please have a look at article 10 of the UK / Australia tax treaty (https://www.gov.uk/government/publications/australia-tax-treaties/2003-australia-uk-double-taxation-convention-in-force).  
It advises that the maximum tax payable in Australia is 15% on the dividends.  
Any tax paid in excess of this should be claimed back by you, through the Australian tax authorities.  
In your self assessment tax return, you declare the dividend and claim up to 15% tax relief as a foreign tax credit.
Thank you.