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Posted Wed, 14 Aug 2024 13:32:45 GMT by carhabit
Hello I am a UK tax resident. I have received dividends from an Australian company in the last tax year. The amounts are - Unfranked amountAUD$13.5k - Franked amount AUD$9k - Gross payment AUD$22.5k - Franking credit AUD$3.9k The dividend is 40% franked at the Australian corporate tax rate of 30%. The company declares the whole of the unfranked amount to be conduit foreign income. Once I convert these AUD$ amounts to £ at the prevailing rate, what do I declare as "dividends from foreign companies" and can I claim any relief against this? Many thanks
Posted Wed, 28 Aug 2024 11:14:52 GMT by HMRC Admin 5 Response
Hi

Please have a look at the guidance regarding dividends at DT2654A - Double Taxation Relief Manual: Guidance by country: Australia: Notes.  
The treaty allow you to claim up to a maximum of 15% of the tax deducted as a foreign tax credit.

Thank you

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