Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 27 Nov 2023 17:23:35 GMT by Moleman
Hi Just trying to complete my sons first Tax return . He just started his career as a professional sportsman and has earnt some money in 13 countries - all have a DTA with the UK - as well as in the UK. On looking at the View your Calculations section, his foreign tax paid amount has been reduced to match the tax he owes . There appears to be a maximum allowable . For example if he paid £4K in foreign tax but only owed £3k tax after allowances etc then the max allowable would be £3K - is this how this works ?
Posted Wed, 29 Nov 2023 15:02:13 GMT by HMRC Admin 5

You would need to review the guidance of the tax treaties between the UK and each of the countries in question.  
There is generally an article relating to 'Artistes and Athletes/Sportsmen' please see:
Tax treaties
Where tax is payable in the other countries, then up to 100% of the foreign tax paid can be claimed as a tax credit in a self assessment tax return.  
The credit for overseas tax paid, cannot be more than the tax payable in the UK.  As your example states he is only able to claim enough to cover the UK tax liability.

Thank you
Posted Wed, 03 Jan 2024 10:49:53 GMT by Moleman
Hi Thank you for the speedy reply and helping me out . Tax form was successfully completed and on time !!! So all brilliant Just a quick question as I am getting the data together for this years tax form In the example from above there is £1k of unrelieved overseas tax . Can I check if would be possible to carry forward this amount to this tax year ?
Posted Wed, 10 Jan 2024 12:22:05 GMT by HMRC Admin 32

No, you cannot carry this forward as relief can oly be given in the year the tax was deducted. Any excess would need to be claimed back from the country(ies) that deducted the tax.

Thank you.

You must be signed in to post in this forum.