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Posted Sun, 31 Dec 2023 18:26:32 GMT by SF Chan
I have interest income (A) and dividend income (B) in my bank held from foreign countries (NON UK bank). 1. May I confirm if both A and B are classified as "dividends from foreign companies"? 2. If so, I shall be able to get the dividend allowance 1000 pounds and the remaining subject to dividend tax? 3. Shall I fill it both A and B amounts together under SA106 - dividends from foreign companies"? 4. Can you please advise if interest income held by non UK Bank is entitled to Personal Savings Allowance OR Dividend Allowance?
Posted Tue, 09 Jan 2024 15:05:48 GMT by HMRC Admin 19

Both should be declared separately. A, would be classed as foreign interest and B, as foreign dividends. They are declared separately as their rates of tax are different.  

In SA106, the interest from each foreign country should be itemised, with any tax deducted in the section for interest. The dividends from each country should be itemised in the section for dividends on page F2 of SA106.  

A list of country abbreviations can be found here:

Foreign notes (2022-23)

Self Assessment will add together your UK interest and foreign interest and work out the tax free amount of your Personal Savings Allowance. The same happens with dividends and the Dividends Allowance.

Thank you.

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