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Posted Mon, 20 Mar 2023 20:27:27 GMT by Ldp87
Upcoming tax year (23/24) I will receive approximately £2000 dividends (some from United States companies that are already subject to withholding tax) and interest from UK bank accounts. Including my salary, interest and dividends my income will total less than £50000. Is the tax free personal allowance (£1000) and 2023/2024 dividend allowance (£1000) combinable? If not and my dividends exceed £1000 do I need to complete a self assessment or can I declare it by phoning up and asking for my tax code to be changed once I've provided the amount I've received (this second option is what the HMRC website appears to suggest) Should I treat dividends earned from the US any differently? Many thanks
Posted Fri, 24 Mar 2023 12:06:29 GMT by HMRC Admin 20
Hi Ldp87,

As the dividends are from abroad, you will need to complete a tax return for the additional tax to be
calculated as only the £1000 dividend allowance will apply to that income.
The savings allowance of £1000 is for interest only and the 2 are not combined.

Thank you.
Posted Fri, 24 Mar 2023 14:18:24 GMT by Ldp87
Thank you. Would I still need to complete a tax return if the dividends come from shares held in an ISA and are paid into an ISA? For non ISA overseas dividends do these all need to be declared on a self assessment, regardless of the amount (i.e if they are less than £1000) Thank you
Posted Tue, 28 Mar 2023 13:02:04 GMT by HMRC Admin 17

Dividends from shares in an ISA are not taxable.

Non ISA overseas dividends are treated as foreign income and are taxable in the UK. 

You would need to report the foreign dividends in your self assessment tax return .

Thank you.
Posted Wed, 29 Mar 2023 16:38:40 GMT by Ldp87
Thank you, This HMRC web page suggests different You do not need to fill in a tax return if all the following apply: your only foreign income is dividends your total dividends - including UK dividends - are less than the £2,000 dividend allowance you have no other income to report My only foreign income is from dividends and will total less than the £1000 allowance for next year. Based on the information on HMRC website it would appear I do not need to take any action. Can you please clarify and if different to the website advise explain why I need to complete a tax return. Thanks for your help
Posted Wed, 29 Mar 2023 16:45:58 GMT by Ldp87
From my original post I have miscalculated Correct is: Tax year 23/24 I will receive approximately £270 dividends from United States companies £244 dividends from UK companies
Posted Wed, 05 Apr 2023 17:12:50 GMT by HMRC Admin 25
Hi Ldp87,

As long as you meet this stipulation, no tax return is required.

Thank you. 


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