Switzerland Withholding Tax on Dividends and claiming tax credit refund as a PAYE Employee

Hi, I am a basic rate tax payer and forecast to be paid less than the dividend tax free allowance. I have shares of a Swiss company which is listed on the Swiss Stock Exchange (SIX). I will be paid dividends, but there is a 35% Withholding Tax. Although I will not file for Self Assessment, i have looked at this HMRC manual https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam121615 which states that i can either: a. use the Swiss Tax deducted as a refundable Tax Credit against my UK Tax Liability or b. Treat the Swiss Tax as satisfying the total UK Liability I intend to claim a 20% refund using Form 86 from the Swiss Tax Authority website [ admin removed link]but how would i get relief for the remaining 15%? Would i still have to file SA to get the refund even though I'm a basic rate tax payer and will receive dividends less than the dividend tax free allowance? I do not think Option b would be applicable to me because i should have 0 tax liability for dividends in the UK. Additionally, If choose option a, would be possible to directly just claim 35% tax credit relief, or would i have to still get the 20% refund, and then claim 15% from HMRC. Assistance would be greatly appreciated.

Hi Jishnu Teegala,

You would need to complete a tax return to claim the refund.
If you opt for the 86 form, you will only declare the remaining tax deducted on the form to claim the refund.

Thank you.

Just for my understanding, let me assume that i decide to file Self Assessment online: If i do not use form 86, i can claim the full 35% withheld via SA? However if do use the Swiss Form 86, I can only claim the remaining 15% via SA? Additionally, what category is the refund under if i decide to claim the full 35%? Would it be Foreign Tax Credit Relief? and how would this change if i used Form 86, would it still be under FTCR? And how would this change if i received more than the Dividend Allowance, i assume i would get less than the 35%/15% remaining balance withheld? Thank you in advance.

Hi,
 

Either way, relief would still be under foreign tax credit relief and the amount you claim is dependant on whether you have already received a credit back from the Swiss authorities. If your total dividends are over £2000 then yes, relief would be limited as UK tax would still be due  . Thank you.