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Posted Thu, 14 Dec 2023 18:40:10 GMT by
Hi, I'm an employee paying tax under PAYE but am filling out the self assessment form as I believe I need to report my foreign saving interests and dividends, even though they are well under the relevant allowances. Am I correct? If so, I have the following questions: 1. I have entered a foreign interest amount under the UK Interest section as this is an interest amount untaxed by the foreign country. I have also entered another foreign interest amount and a foreign dividend amount under the Foreign section as they are already taxed by the foreign country and I would like to claim FTCR. Am I correct in filling out the interests/dividends this way? 2. I have also entered UK saving interests and dividends under the UK interest and Dividends sections. So everything entered including the UK and foreign interests/dividedns are calculated towards my UK income for tax calculation. There is a tax amount due (after deduction of the FTCR amount I entered), which I don't quite understand as it appears the savings and dividends allowances are not taken into account? I'm a basic rate payer. The total interests earned for the tax year 22/23 are below the Personal Savings Allowance £1,000, and the total dividends earned are below the Dividend allowance £2,000. Why is there a tax amount due in this case? 3. I have some matching partnership shares given by a previous employer under a share incentive plan. Based on HS305 Employment-related shares and securities - further guidance (2020), I do not believe these shares are tax chargeable, in this case, do I need to include the value of the matching shares in the self assessment form? https://www.gov.uk/government/publications/employee-shares-and-securities-further-guidance-hs305-self-assessment-helpsheet/hs305-employment-related-shares-and-securities-further-guidance-2020 Appreciate your guidance on the above. Thank you very much.
Posted Tue, 19 Dec 2023 15:32:54 GMT by HMRC Admin 5
Hi 

As the savings and dividend income is below the allowances, there will be no UK tax due and as such you will not be due foreign tax credit relief.
This is only applicable if UK tax has been applied on the same source of income.
As you are having to declare details on the foreign section anyway, you should show all foreign income in there.

Thank you
Posted Wed, 20 Dec 2023 00:18:33 GMT by
Thank you so much for your reply. Can you please also advise on question 2 & 3. You mentioned there will be no tax due, however, after inputting everything there is tax due in the final calculation. Is this normal? Will I not be required to pay the tax at the end, given that the foreign income is below the allowances? Thank you.
Posted Fri, 29 Dec 2023 16:14:14 GMT by HMRC Admin 2
Hi,
  1. If there is tax due it may be on other income you have and not in relation to interest or dividends.
  2. You still need to declare the UK interest and dividends. If this once added to the foreign income means you are above the allowances then yes, you can claim foreign tax credit relief.
  3. No, you dont declare these.
Thank you.

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