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Posted Mon, 25 Mar 2024 10:03:04 GMT by Belgiandividend
Foreign Tax Credit Relief on Dividends in Belgium I earned 5742 Dividends in Belgium. I have paid 1722 Belgian Tax on 5742 Dividends in Belgium. If they were UK dividends, I would have to pay 5742 - 2000 (exempt dividends) at the Additional rate of 39.35%. 3742 at 39.35% equals 1472 I want to set my 1722 Belgian Tax against my liability to UK tax on 5742 Dividends. I understand that FTCR, Foreign Tax Credit Relief, can never be more than the UK tax liability. Therefore, my FTCR is 1472. I do not know how to fill "Foreign Income 20 - Rate of tax credit relief allowed." I receive a message "ERROR: Please check and amend the entry below. Please select Rate of tax credit relief allowed: 0%, 10%, 15%, 20%, 25%... Please select Rate of tax credit relief allowed: 0%, 10%, 15%, 20%, 25% What Rate should I choose?
Posted Wed, 27 Mar 2024 11:45:33 GMT by HMRC Admin 25
Hi Belgiandividend,
Article 10 of the UK / Belgium tax treaty:
Belgium: tax treaties
This covers dividends.
It restricts tax relief on dividends to 15%.
In your tax return, you would enter 15%, to calculate the foreign tax credit relief due.
Thank you. 

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