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Posted Fri, 18 Feb 2022 21:27:07 GMT by ELEL
Hello, In the HMRC webpage: https://www.gov.uk/tax-on-dividends/previous-tax-years It says that before 2016 tax year, the “effective dividend tax rate” for Basic Rate tax band is 0%. Does it also apply for dividends received from foreign listed companies? If not, can you please advise how the dividend tax is calculated for foreign dividend received before 2016 for basic rate tax band? Thank you.
Posted Mon, 21 Feb 2022 13:22:06 GMT by HMRC Admin 18
Hi,

Foreign dividends are charged to tax under UK rules so these rules would also apply for foreign dividends prior to 2016. However please note that the oldest in date year for review for tax

purposes would be 1718. 

Thank you.
Posted Tue, 22 Feb 2022 20:03:49 GMT by ELEL
Hello, Thanks for the reply. I fully understood that "Foreign dividends are charged to tax under UK rules". This is not my query. You mentioned that "these rules would also apply for foreign dividends prior to 2016". This is in fact is the key part of my query in my previous message. I am not sure whether I understand the meaning of "these rules" in your answer correctly. In the HMRC webpage: https://www.gov.uk/tax-on-dividends/previous-tax-years , It says that before 2016 tax year, the “effective dividend tax rate” for Basic Rate tax band is 0%. Your reply states that "these rules would also apply for foreign dividends prior to 2016". Do you mean that the rule “effective dividend tax rate” for Basic Rate tax band is 0% would also apply for foreign dividend before 2016? I will appreciate it if you can explicitly confirm this point. Thank you.
Posted Wed, 23 Feb 2022 15:16:45 GMT by HMRC Admin 10
Hi

Yes this is corrrect.

Thankyou.

Regards.

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