Withholding tax by US ETF

Dear HMRC, I hold US ETF and 30% of dividends were held for the withholding tax, and may I ask if those monie held by US gov need to be reported to HMRC? Or I have to report it as income and claim a relief? Thx

Hi,

If UK tax resident and domiciled, you need to declare your worldwide income and claim any appropriate Foreign Tax Credit Relief.

Thank you.

Dear HMRC, For claims of FTCR, Where I can found if my ETF investment are eiligiable for apply the relief? The US ETF have more than 60% investment invested in interest bearing assets, the distributions will be treated as interest income, in this situration, would the 30% of withholding distributions classed as interest income or dividends on claims of FTCR ? thx

Hi,

You can find guidance here:

STSM101060 - Introduction to Collective Investment Schemes: Exchange Traded Fund - Overview

Thank you.

Dear HMRC, Yes,I read STSM101060, ETF product is under the scheme, so, my question is :even the distributions are treated as interest income by the specific criteias mention on SA106 note( ETF have more than 60% investment invested in interest bearing assets), the FTCR can still apply 15% of dividends claims relief. Please correct me if i am wrong, If so, As a basic taxpayer, I have £3500 (Pre Tax) USA Dividends. There is 30% withholding tax in USA, so I got £2450 in my account. If I claim Foreign Tax Credit Relief(FTCR), I try to fill in the SA106 as below. 1. Page F1, box 2: input 525. (=3,500 x 15%) 2. Page F2, 'Interest and other income from overseas savings', -Column A: input USA -Column B: input 3,500 -Column C: input 1050, lower of (3500 x 30%) and (3500x15%) -Column E: input X -Column F: input 3,500 As my taxband is 20%,so 15% of tax deduction is expected which I put on box2. Am I Correct or somthing miss? please help to correct me. Thx

Hi terrywykwong

We cannot confirm the figures to declare in the tax return, merely advise which box the figures can be declared in.  For an answer to your question, you would need to seek the advise of a professional, such as an accountant.

Thank you