Refund of tax taken off Foreign divided

I just filed my 2023/24 paper tax return and following the self assessment guidance notes on foreign dividends income below the £1000 threshold, I was not required to use the Special Foreign pages. Instead I entered on page TR3 of the tax return the following: Box 6 Foreign dividend £720 ( which was from a Spanish company but there was no space on the tax return to specify the country name ) Box 7 Tax taken off ( in Spain) £90 Box 4 UK Dividends £30 As the total dividends ( Foreign & UK) add up to less than £1000, will HMRC refund back to me the £90 foreign tax already deducted in Spain against the Spanish dividend? I know there is a reciprocal tax arrangement between the UK & Spain to avoid double taxation. Thank You

Hi,
No. You will need to contact the Spanish authorities to have this refunded.
Thank you.
 

Thank you Admin 8 for your reply. Can you therefore please advise the benefit / purpose of reporting the amount of foreign tax deducted on the self assessment tax return? Regards

Hi,

You declare the foreign tax in the event UK tax is also due on the same source of income and you can then use that foreign tax to reduce the UK tax due.

Thank you.

Thank you Admin19 for the additional reply. Can I therefore assume that if some UK income tax is still due against some of my income ( e.g. from property rental profit) then the foreign dividend tax already deducted in Spain would automatically, through Self Assessment, reduce any UK income tax due against my UK income? Regards

Hi,
The foreign tax credit relief can only be used against the same source of income. it wont therefore reduce your UK liability for any other sources that you have.
Thank you.