Tax credit relief allowed on foreign dividends

Hi, I earned dividend income from companies in different countries including, US, China, Japan, Australia, Canada & France. Tax was already deducted in my broker's account when dividends were paid. I understand I can claim the tax credit relief according to the double taxation treaty signed with these countries. However when I filled up the online self-assessment form, I was asked to input the rate of tax credit relief. It's very hard to find this out in the HRMC website. Would you be able to provide me the rate of relief for the above countries for my easy reference? Many thanks!

Hi,

Each country's rates are available here:

How Double Taxation Treaties affect non-UK residents with UK income

Thank you.

This is very helpful . Thank you so much!

Hi, I just noticed that the title of the link provided was referring to non-UK residents. Can I use the same document to find out the maximum foreign tax relief applicable to UK residents? Or there is another document just for UK residents? Thanks

Hi,

Yes, you can use the same document to find out the maximum foreign tax relief available to UK residents.

Thank you.

Hello. I have the same question. I’ve looked at the document called ‘Digest of Double Taxation Treaties’. It refers to “UK income received by non-residents of the UK who are residents” of a foreign country. In my case, and the OP, it is the other way round. I’m a resident of the UK receiving income from a foreign country. For example, I receive dividends from a Japanese corporation and from an Australian one. The tax return asks me to input the “minimum foreign tax payable” for Japanese dividends. But it gives no indication of where I can get that percentage from. The uk.gov tax website directs me to the same document: Digest of Double Taxation Treaties. I’m sure many people come up against the same problem. Can anyone help?

Hi,
 

Please note that the information you require can be obtained from HMRC's Double Taxation  'guidance by country', which you can find here:  : Double Taxation Relief Manual  . Thank you .

7. Amount included in box 6 that does not qualify for Uk tax credit - see notes In reference to US dividends, claiming 15% relief. Total US dividend is said to not qualify as above on the draft copy of the SA return. What might be the reason for this?

Hi, I also have a question. I am a UK resident who, for a number of years, has neglected to claim foreign tax credit relief (FTCR) for US tax paid on US company share dividends. To claim the FTCR from previous years (in 2020, 2021 and 2022) when I failed to claim Double Taxation Relief (DTR) for the US withholding tax (15% paid on the share dividends), should I use the digital forms service to reclaim a tax refund for the above tax years or another method? Am I entitled to claim FTCR for earlier years as well, prior to 2020? If so, how do I make a claim? Footnote - for tax years ending 2020 to 2022, instead of paying tax on US company share dividends at a rate of USA (15%) + UK (32.5 or 33% - 15% tax already paid in USA), I paid double tax on the dividends; USA (15%) + UK (32.5 or 33%). Many Thanks.

Hi TMcH66

You can amend your tax returns for 2 years from the end of the 31 January deadline for the tax return, eg. deadline for 21/22 return is 31 January 2022, so it can be amended up to 31 January 2024.  
You can claim foreign tax credit relief by amending your tax returns for 21/22 & 22/23.  
For 19/20 & 20/21, you will need to make an overpayment relief claim.  
For 19/20, you will have until 5 April 2024 to make your overpayment relief claim in writing.  
If you make it after this date, it will be too late. It is currently too late to make an overpayemt relief claim for 18/19 or any earlier tax year.  
All overpayment relief claims should be sent to H.M. Revenue and Customs Self Assessment BX9 1AS.  
The guidance at SACM12150, asvises of the claim format that is required:
SACM12150 - Overpayment relief: Form of claims

Thank you

Many thanks for your help. Very clear.

Hi K C,
It will be part of the double taxation agreement and specifies that no relief is available.
Thank you. 

 

Hello , HMRC Admin , I'm preparing my tax return for 22/23. I've received £22000 dividend from China stocks and China Gov take away £620 tax (net received divdend is 22000-620 = 21380 and I don't have any other income) , here is my input : 1. Amount of income arising or received before any tax taken off = 22000 2. Foreign tax taken off or paid = 620 3. Do you wish to claim foreign tax credit relief = Yes 4. Rate of tax credit relief allowed = 15% The HMRC tax system final calculation show "minus Foreign Tax Credit Relief (FTCR)=£620" , Q1. is my input of FTCR correct ? Q2. is the calculation of FTCR correct ?

Hi ,
 

We cannot advise how much the foreign tax credit amount would be.  We can only state the the foreign credit is up to the amount of foreign tax paid. Thank you .