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Posted Mon, 31 Jan 2022 11:41:02 GMT by Sigrid
I received a dividend paid in USD equivalent to £2500 in a single payment, corresponding to a shareholding of more than 300 shares. So in reality, it's less than £10 per share. Some foreign tax has been withheld. When computing my taxes, I was planning to break the dividend down into 2 lines; 1/ the first £2000. For these, I cannot reclaim any foreign tax withheld because there is no tax due in the UK (correct me if I am wrong). 2/ the second of £500. For these, I will reclaim 15% tax inline with the double taxation agreement and pay tax on the gross amount. Is it ok to break down the dividend in 2 lines as I did, given it's not a single share but many shares? Thanks
Posted Tue, 01 Feb 2022 10:29:28 GMT by HMRC Admin 17

You would just enter the total amount of shares sold on the capital gains section and then on the foreign section, the amount of tax credit relief due.

You do not need to break these down into £2000 and then then remainder.

See link:

Gains on UK life insurance policies (Self Assessment helpsheet HS320)  .

Thank you.
Posted Mon, 16 Jan 2023 16:20:39 GMT by Mark Lee
Hi, Similar situation with me! I have received dividends paid in HKD ( equivalent to £250) in the tax year, corresponding to shareholding of more than 20 different company shares. So in reality, it's less than £ 15 per share dividend. Would l enter the total amount of share dividends in SA106? Thank you in advance.
Posted Thu, 19 Jan 2023 13:44:18 GMT by HMRC Admin 20
Hi Mark Lee,

You would enter the gross dividend and any foreign tax decuted on SA106, using pounds sterling.

Thank you.

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