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Posted Sun, 16 Oct 2022 14:40:54 GMT by OT0905
Hi Team, I received interest and dividends from overseas last tax year. Both are less than the corresponding allowance (i.e. £1K for interest and £2K for dividends). 1) Should I use the monthly exchange rate listed by HMRC? 2) Will the unused part of the interest and dividend allowance be added to the personal allowance? Thx
Posted Wed, 19 Oct 2022 16:07:40 GMT by HMRC Admin 10
Hi OT0905
You should use the exchage rate at the time you received the dividends.
The offical exchange rates can be found at :
Exchange rates from HMRC in CSV and XML format
If once your total income is added up, you find that you are liable to tax at the higher rate, the tax free interest allowance will lower to £500.00.
You would add your foreign interest to your UK interest, subtract the allowance and the remainder will be taxed at the appropriate rate.
 For dividends the tax free amount is £2000.00,  Add all your UK and foreign dividends together, subtrance the relief and the remainder is taxable at the appropriate rate.

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