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Posted Wed, 26 Jun 2024 14:03:25 GMT by TacV
I am trying to claim Foreign Tax Credit Relief via my online tax return but without success. I have done so straightforwardly for years via my paper tax return. I receive dividends on just one foreign share. When I enter these dividends (gross of tax withheld abroad) on the appropriate page of the online return and say “Yes” to “Do you wish to claim foreign tax credit relief”, I am asked for “Rate of Tax Credit Relief”. I select the correct figure for my dividends (15% - they’re Canadian) from the drop-down list and finally, at the end of the page, press “Save and Continue”. At which, I am told to “check and amend” the 15%; thereafter I merely go round in circles. Last year I eventually had to give up and revert to a paper tax return – there was no Self Assessment Helpline. This year I have spoken to the Self Assessment Helpline and an adviser there has reproduced my problem for a hypothetical Canadian dividend on his system but not been able to tell me what to do about it. How can I claim this Foreign Tax Credit Relief via my online tax return?
Posted Wed, 03 Jul 2024 08:00:04 GMT by HMRC Admin 21 Response
Hi TacV,
You may find it easier to delete the foreign section and start again fresh.  In this way we can eliminate any issues.  Please click on the foreign section in 4. - Tailor your return.  Scroll to the bottom and click on 'delete foreign section' and then confirm.  Now scroll up to the menu and select 3. tailor your return.  Scroll to the bottom of page 1 of 3 and select th e'Yes' button for the question ""If you received any foreign income, do you need to complete the foreign section?"". Select 'No' to the question ""Do you wish to claim Foreign Tax Credit Relief on Capital Gains"". Click save and continue. You will receive a warning.  Click on save and continue again to move to the next stage.
In 4. Fill in your return, select the foreign section.  Select 'no' if you were unable to transfer some or all of your overseas income.  Click on the tick box named ""Dividends from foreign companies"" and click on save and continue.  You should now be at the page ""Dividends from foreign companies"".  Give your dividends a referece, eg. ""Canadian dividends"". This will help identify dividends from multiple countries.  Choose your country (Canada) and enter the amount of dividends in pounds sterling.  Enter the foreign tax paid. Tick year to "Do you wish to claim foreign tax credit relief?""and select 15%. Click on Add, then click on save and continue. Click on save and continue, to get to the page named ""Overpaid tax"". Complete as neceassary and click on save an continue.  Keep clicking on save and continue to reach the page ""View your calculation"". In this page you can alter the summary of foreign income, by moving them up and down. You should be able to see your dividends, amount foreign tax and max foreign tax relief.  Click on 'Next'. SA should have calculated the maximum amount of tax relief due, which will be up to 15% of the amount of dividends. At this point you can choose to use the calculated figure or provide one of your own. Click on save and continue and work your way to the end of the tax return.
Thank you.

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