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.
 

HI. I’m new to tax returns and I’m a bit confused about the FTCR and the working sheet. I’ve ticked to say I want to claim FTCR. Do I have to complete the working sheet as well and put in a figure for the amount of FTCR into my SA return? It says ‘if you wish to work it out’ so that implies to me that I don’t have to do it and it will get worked out by HMRC if I don’t. But I just wanted to check in case I won’t get FTCR if I don’t do the working sheet. Sorry this is probably a very basic question….

Hi kharris68,
You do not have to do the working sheet, if you file online you would normally enter the credit yourself as there will be no manual interevention.
If you do not include it, you will need to phone to have the return amended.
Thank you.

Dear Sir or Madam Pardon me for posting a reply on this thread but I could not find an answer elsewhere nor could I find how to post a new query to the community or advisors. I am self employed sole trader- and have regularly been filing my Self Assessment. This letter is to seek your specific advice and guidance regarding an omission I made, inadvertently, while filing the return for the Tax year 2022-23 (this was the very first year during which I accrued some income) and consequently have ended up overpaying tax and wish to claim a refund. The foreign income accrued in the Republic of India, with which the UK has a long standing DTAA. I have cross checked and the DTAA is operational This is what happened. I was trying to report some foreign income and tax that has already been assessed by the Income Tax in India. This is below the threshold in the category of professional income and there was no tax due on it. I have the required documentation from the IT Department in India While filling in my UK return I inadvertently forgot to tick the column for wanting to claim tax credit under the confusion that since the income was under the threshold there was no tax paid. Or indeed to be paid in the UK since the DTAA would automatically be factored in. I had not realised that the system would auto calculate this differently. This is not untaxed income. It has been taxed for short term capital gains. The Long term gains reported and the self employed professional income have also been assessed but there was no tax due as per the threshold and available exemptions. But tax has been applied in the UK and I would l ike to apply for a refund. I am not sharing details like my UTR on this post following your guidance not to share such information in this forum. I have also tried to call several times but the waiting times are too long. I thought therefore that this route may be more efficient and wanted to request you to let me know a step by step process of what I need to do - to submit the relevant forms and documents so that my refund is processed and accounted for before the deadline for filing the SA return for Tax year 2023-24. I thank you for your sympathy, understanding and support and look forward to hearing from you at the soonest. Kind Regards

Hi,
Please see the link below
Tax on foreign income: If you're taxed twice
Thank you.