Foreign Tax Credit Relief

Hi HMRC, I am going to claim the foreign tax credit relief for my tax liability in Australia. Tax year: 1/7/2021 - 30/6/2022, Tax amount: £800 Tax year: 1/7/2022 - 30/6/2023, Tax amount: £1,000 Due to the tax year different between Australia and UK, I calculate the amount of FTCR for tax year 6/4/2022 - 5/4/2023 as below: (£800 x 86/365 days) + (£1,000 x 279/365 days) = £188 + £764 = £952 Is the logic of my calculation correct? Pls confirm if £952 is the correct amount I can claim for FTCR. Thanks.

Hi,

You have not advised the nature of source of income in Australia. If the income is from 'non savings income', then you can claim a foreign tax credit of up to 100% of foreign tax paid. You will need to work out your UK tax liability with and without the overseas income. The foreign tax credit will the difference between the two tax liabilities, with the tax credit being up to a maximum of 100% of the overseas tax deducted.  

Have a look at HS263 for more information.  

Relief for Foreign Tax Paid 2023 (HS263)

Thank you.

Dear HMRC Admin, Thanks for your comments. The source of income in Australia is rental. Could you pls review my calculation of FTCR and confirm if it is correct? Tax year: 1/7/2021 - 30/6/2022, Tax amount: £800 Tax year: 1/7/2022 - 30/6/2023, Tax amount: £1,000 Due to the tax year different between Australia and UK, I calculate the amount of FTCR for tax year 6/4/2022 - 5/4/2023 as below: (£800 x 86/365 days) + (£1,000 x 279/365 days) = £188 + £764 = £952 Thanks again.

Hi,

We regret that we cannot reply to scenarios in this forum. If you need more detailed information, you will need to contact the Self Assessment team, 

Self Assessment: general enquiries

Thank you.