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Posted Sat, 01 Jul 2023 23:29:29 GMT by
I recently inherited Australian shares from my parent's estate. I am a UK resident. These Australian share dividends are paid to me as income and converted by the issuer into Pound Sterling. They fully franked at the Australian 30% corporate tax rate. I'm uncertain about the UK tax implications regarding these Australian shares and dividends given my specific UK income circumstances. In short, the total earnings from my UK income are less than the UK's tax-free threshold. Briefly: 1. ISA Shares: All of my other investments are held within an ISA, I understand that ISA investments are typically not subject to tax on dividends or capital gains. 2. Carer's Allowance (£3,991p.a) and Children's Allowance (£2074p.a): These are the only forms of income I receive. 3. Savings Account Interest: I also have approximately £450 in interest from my savings account per annum 4. Australian Shares: In the last tax year I was paid approximately £5000 in dividend payments from the Australian shares after the deduction of the franked/withheld amount Considering my situation, I am wondering if I am eligible to claim back any of the franked dividend tax under the UK's double-taxation agreement with Australia. Thank you in advance for your time and assistance.
Posted Fri, 07 Jul 2023 07:49:35 GMT by HMRC Admin 20
Hi Pierian,

HMRC do not refund foreign tax.
You can only get a credit in resepct of the UK tax that would be due on the income and any excess would need to be reclaimed from the foreing authority.
Due to the level of income received, you need to declare this on a self assessment return -
Tax on foreign income

Thank you.

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