How to correctly enter US dividends in online tax return?

Hi sbradford50 Bradford,
If this is your only income, your personal allowances will be used to cover some of the tax due and this therefore will reduce the amount of foreign tax credit relief that is due.
Thank you.

Hi there, I brought US shares via a UK based brokers (Interactive Brokers UK Ltd), obtained dividends from May 2021 since I moved to the UK. I have a job thus I added the dividend obtained in my tax return (Add Missing Income). The record in my HMRC App shows it is a UK Dividend of £9475. Now I know it was a mistake, because the shares are US Shares thus it should be treated as a Foreign Income, and I need to do self assessment instead of putting the amount to + Add Missing Income. What can I do now?

Hi admin, Further information : I was asked by HMRC to input via self assessment but I already did it at (+Add Missing Income), I am afraid that will cause a further confusion or HMRC will double count my income.

Hi HMRC team Filling 2022 to 2023 tax self assessment tax return: UK resident Taxable income from UK sole employer - GBP 60000 Dividend from US stock (W8 available) - GBP 200 (From the tax calculation page on the self assessment form - the GBP 200 is counted as part of the income and taxed normally) Can I claim UK tax relief with the withholding tax by the US? If yes, how? Do I need to apply for Certificate of Residence in the UK? If yes, do I need to fill in every company? (I use a trading platform and the dividends are from more than 10 companies, some of them are ETFs) Thank you.

Hi L S Shirley,

Assuming that the dividends arising from your US shares were declared in your 2022 tax return, you have until 31 January 2024 to make the appropriate amendments. You should amend the 'Add Missing Income' figure to 'nil', and declare the US dividends in the SA106 section under the heading 'Dividends from foreign companies'. You can see guidance here:                                                
Foreign notes (2022-23)

Thank you.

Hi HMRC team, May I ask for reply regarding my post 4 days ago? Thank you

Hi sssudobu,
As the payment is from your employer, the income should be shown in the employment section if it is included in your P60.
You would then claim credit for the Tax in the foreign section under 'Employment, self-employment and other income which you paid foreign tax on'.
If it's not included in your P60, please include it on the box on the employment page for 'Tips and other payments not included on your P60'. ERSM20193 advises that when RSUs payout at the market value on what is called "dividend equivalents" in either cash or shares, such payments will generally be taxed as earnings in the year they are received.
ERSM20193 - Employment-related securities and options: what are securities: RSUs and dividend equivalents
Thank you. 

Hi HMRC admin, The Dividend from US stock is my own investment instead of from my employer. May I ask for further advice then? Thank you!

Hi,

This would be declared in the foreign section of the SA106.  You would tick 'yes' to the question "If you received any foreign income", when tailoring your tax return online.  In the "fill in your return" section, click on the 'Foreign' option. Within that, tick the square box for "Dividends from foreign companies" as this will tailor the tax return with the boxes you require.

Thank you.

I receive US dividends >£2000 and pay 15% Witholding tax do I enter the original Gross amount of the dividend or the Net amount after the 15% withholding tax? Also if it is the Gross amount can I claim back the 15% withholding tax already paid? What I’m asking is do I pay double the tax or can i claim 15% of it back? Thanks

Hi is this forum still live it’s been 10 days since I posted and still no reply?

Hi,

You should enter the gross amount received and then enter the 15% withholding tax in order to claim Foreign Tax Credit Relief. You can see guidance here:

Tax on foreign income

Thank you.

Hi, I am trying to complete my 2023-2024 Tax return. I seem to have similar issues to those described above. I have £2073 Gross US Dividend income and paid £311 US Tax on it (15%). I replied Yes to "Do you wish to claim foreign tax credit relief?" but I get an error if I select 15% in the drop down box. Can you please tell me what I am supposed to enter.

Hi Paul Hudson,
15% is the maximum relief allowed but this depends on any other dividends received and your other income so the full 15% may not be due.
Thank you. 

 

Very strange… I tried to do exactly the same action the following day and despite getting the warning message I was able to specify 15% and successfully complete my tax return. The only difference was that I used the app rather than the website. Before making my original post to the forum, I did try this unsuccessfully several times. So I’m not convinced that there was not an bug.