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Posted Fri, 23 Dec 2022 11:41:54 GMT by Lorenzo
Hello, I am filling my first self assessment. I have steady income from employment in UK and no other form of income in the UK. In the same tax year, I received dividends from a company in my home EU country. These money have been paid out in a bank account in my name in that country and have not left that country nor been brought into UK (and I do not plan to). This country has a double taxation agreement with the UK and such dividends have been taxed accordingly before being paid out. Do I need to declare these dividends when doing my self assessment? Thank you
Posted Fri, 23 Dec 2022 16:50:37 GMT by HMRC Admin 2

You will need to review the guidance at RDR1, to confirm your residence, domicile and remittance. This will help you decide if you meet the criteria for the remittance basis.  

If you do and you do not bring the dividend to the UK, then it is not taxable in the UK.

If you bring it to the UK in a later tax year, it will be taxable in the UK in that year.

Thank you.
Posted Mon, 02 Jan 2023 21:49:46 GMT by Lorenzo
Thank you for this answer, I have reviewed the RDR1 guidance, and I think I am a UK resident. I have been in the UK for more than 183 days every year since 2016. Given that, I think my tax is calculated on arising basis, hence I need to declare any income even if not brought into the UK, correct? The Double Taxation Agreement should then provide relief for the tax paid in the EU country, correct? Will it be partial or total relief? If you could confirm the above I would be grateful Thank you
Posted Fri, 06 Jan 2023 12:04:04 GMT by HMRC Admin 32

That is correct. The amount of relief will depend on the type of income that Foreign Tax has been paid on and the amount due in the uk. see guidance here:

Tax on foreign income

Thank you.

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