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Posted Fri, 24 May 2024 11:11:43 GMT by james-smith
Hello, I am going to be receiving dividends from a Wyoming based LLC in the USA. My usual income is usually up to the lower rate limit of £50,270 (salary/UK dividend mix). What will my dividends from the US based company be taxed at here in the UK? Thank you
Posted Wed, 29 May 2024 14:40:11 GMT by HMRC Admin 5

As you are in receipt of foreign income, you will need to declare it in a self assessment tax return, in the foreign section,
If you are required to pay tax on the dividends in the USA.  The UK/USA tax treaty allows you to claim a foreign tax credit of up to 15% of the foreign tax paid.  
Please have a look at article 10 regarding dividends at  Uk/USA Double Taxation Agreement - 2002
If you are not already registered for self assessment, you can do this at Check how to register for Self Assessment.

Thank you
Posted Wed, 29 May 2024 15:23:40 GMT by NT TSI
Query relates to USA dividends paid into a UK Stocks and Shares ISA after 15% US tax deduction. Can the 15% USA withheld tax be claimed in the same way as if the USA dividends were paid to the owner directly as opposed into a UK Shares ISA?
Posted Mon, 03 Jun 2024 11:18:05 GMT by HMRC Admin 19

Not if the shares are placed in the ISA, as the dividend is not taxable, so no tax to set the withheld tax against.

Thank you.
Posted Mon, 03 Jun 2024 11:41:35 GMT by NT TSI
Thank you for your response. The USA withhold the 15% tax before they pay the remainder into my UK Stocks and Shares ISA account. Can this 15% USA withheld tax be claimed through my Self Assessment and pay the UK Tax due as I have other US dividends paid to me directly (not in an ISA) and I currently claim the 15% USA withholding tax under the Double Tax Treaty ? Thank you
Posted Wed, 05 Jun 2024 14:23:58 GMT by HMRC Admin 10
You cannot claim relief for the tax deducted on the ISA dividends. Foreign tax credit relief is only applicable for the source it is actually taken from so you can only calim relief if tax is deducted from the other dividends that you report.

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