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Posted Mon, 04 Jul 2022 01:00:42 GMT by Czarek
Dear Admin, [Reply to Admin 26's answer (previous post)] The problem is that when I report dividends received from Polish joint stock companies listed on the Polish stock exchange in Self Assessment online and when I want to claim a Foreign Tax Credit Relief, I have to choose the tax rate for the Foreign Tax Credit Relief. There are a couple of options on the website and I don't know which one to choose to claim the FTCR on dividends already paid in Poland. It is about a specific tax rate. In "Foreign notes", under the subtitle "Foreign Tax Credit Relief" I found, among other things, the following phrase: "If you’ve paid tax in another country on your overseas income you can claim Foreign Tax Credit Relief (FTCR) if: • the amount of FTCR does not exceed UK tax on the same item of income or gains " Hence, I asked earlier a question whether I should choose the 7.5% rate that I would pay in the UK on dividends in the first tax threshold, but 9 months ago from Admin 9 on the forum I got the following answer: "The rate for allowable Foreign Tax Credit Relief on dividends from Poland would be 10% as per the double taxation treaty. Please see here: UK / Poland Double Taxation Convention " I am therefore a little confused about the tax rate I should choose to claim Foreign Tax Credit Relief, and I am asking. Thank you very much for the previous answer, but unfortunately it adds nothing to the answer to my question. If I fully understood what is written in "Foreign Notes", I would not ask questions here. Thank you in advance for your answer.
Posted Tue, 05 Jul 2022 10:23:36 GMT by HMRC Admin 17

Polish dividends are allowed tax relief at 10% so this is the maximum relief that you can claim.

You would need to see what your total income is to see if you would be liable to UK tax at more than the 7.5% on the dividends before
you answer that question on your tax return.

You would review the calculation and then go back to claim the foreign tax credit relief at the appriopriate rate  .

Thank you.

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