Foreign tax credit relief

Hi, I received this message "Sorry, we can't automatically calculate foreign credit relief for you. If you wish to work it out for yourself the figures below will help you." when finalizing the tax return. Does it mean that the foreign tax paid stated in the 'Foreign tax paid on employment, self-employment and partnership' section is excluded from the final calculation? If so, what actions should I take in order to complete the tax return, should I enter the amount manually on the next page? And where to find out how much FTCR I can obtain as the fields in 'Working sheet 1 for income 2023' don't seem to match with the figures under the 'Filling in the Foreign Tax Credit Relief Working Sheet (FTCRWS)' section. Thank you to advise.

Hi,

You would need to check the double taxation agreement for the country from which the income is from as different rates apply to different source of income. If your income relates solely to paid employment then you are due full relief for the foreign tax paid (up to the maximum of UK tax due). You need to enter the amount you want to claim as this figure doesnt automatically carry forward.

Thank you.

Hello - I have a similar problem, I have entered the foreign income (from employment only) in the employment income section (without a PAYE reference for the foreign employer), and declared the foreign income and tax paid abroad in the Foreign section, but the system says "There are no figures used to calculate your foreign tax credit relief from Part 3" in the "View your calculation" step. I have checked and the numbers I am provided in that step to look at are accurate, but in the previous step it says "Enter your foreign tax credit relief in the box provided", yet no such box is provided. The amount of tax relief I would want to claim should be the tax paid abroad, I just don't know where to enter it. Might you be able to help with this? Many thanks.

Hi Michael Rovatsos

In the employment section, you would enter "N/A" for the employer reference.  You would also declare the foreign employment income, to include the income in the tax calculation.  
If foreign tax was paid, you also declare the foreign income and tax in the foreign section, along with the tax paid.  This will allow you to claim a foreign tax credit of up to 100% of the foreign tax paid.  
The maximum foreign tax credit you can claim is the equivalent of the UK tax payable on the employment, where the UK tax is lower than the foreign tax or the foreign tax paid where the UK tax is more.

Thank you

Hi , May I know whether I need to upload the Foreign tax credit relief working sheet (FTCRWS) and the SA106 along with the SA100 for the Foreign Tax Credit Relief claim? Do I need to mail those documents if I filing the SA100 online? Does the Foreign Tax Credit Relief claim needs to be calculate in proportion as I have a split year applied for the year 2022/23? Thank you

Hi auellen,
Its not mandatory but you can attach it as a pdf to show how you have worked out your figure.
The foreign tax credit relief claim would only apply on the foreign income declared for the UK part of the year as you would not include
foreign income prior to arrival when claiming split year.
Thank you.