Foreign Income section in online Self Assessement

Hello, The following is my foreign income (converted to GBP based on monthly exchange rates provided by HMRC): Category Gross Amount Tax deducted at source Bank Interest 500 106 Dividends 1000 210 Capital gains 4500 580 Tax refund issued by foreign country tax office after submitting their self assessment: £500 My questions are related to UK online SA Foreign income section. If there was no refund then filling in the UK SA foreign income section would have been easy, just copy/paste from the above table. However because of the refund issued, I don't know what to fill in the following (see below) because part of the tax that was deducuted earlier has been refunded. Kindly advise as to how do I declare tax deducted after getting a refund. 1. Interest and other income from overseas savings: Foreign tax taken off or paid (optional): ? 2 Dividends from foreign companies:Foreign tax taken off or paid (optional): ? 3. Capital gains: Foreign tax paid (optional): ? The next question is about foreign Other income and it's tax deducted at source. Where do I declare this? There is Other overseas income and gains section but this page does not have a field to record tax dedcuted. Kindly advise. Thanks :-)

Hi

HMRC cannot advise you on that as you would need to check with the country the income is from to ascertain how the refud has been split in relation to the tax deducted.
For the 2nd question, you would need to clarify what the other foreign income actually is.

Thank you

Hello HMRC, The process is standard like in the UK (except tax rates). You key in various incomes and taxes paid in their self assessment. The system then checks if the total income is above the personal tax free personal allowance. If yes, then it works out the tax on the difference above the threshold. My foreign income was just over the tax free allowance. Their tax program worked out tax on the difference above the personal tax free allowance. This figure was less than the tax already deducted at source from the bank interest, capital gains and dividends. Therefore I got a refund. Given this scenario, do I key in Bank interest & tax deducted at source, capital gains & tax deducted at source and dividends & tax deducted at source AS IT IS (after converting to GBP) and ignore the refund? I have asked the same question differently and hope that it is clear now. Look forward to your reply. Thanks :-)

Hi
As you got a refund, you need to take this into account when working out your foreign tax credit relief due and the claim cannot be more than you did in fact pay.

Hello HMRC, Online self assessment the following is relevant to my situation: Under Foreign income details: - Interest and other income from overseas savings: - Foreign tax taken off or paid: (optional) - Do you wish to claim foreign tax credit relief? Under Dividends from foreign companies : - Amount of income arising or received before any tax taken off: - Foreign tax taken off or paid: (optional) - Do you wish to claim foreign tax credit relief? If there was no refund in the foreign country self assessment then I would have simply copy/paste the GBP equivalent of income and tax paid in the above boxes and selected No for foreign tax credit relief. But in my case there was a refund so I cannot copy/paste tax deducted figures because that does not take into account the refund. For that reason I have worked out foreign tax credit relief figure. But this Foreign tax credit relief figure is for the overall income/overall tax whereas in UK SA, it is asking at the level of interest income, dividends etc. How do I apportion the overall tax credit relief figure to Interest income, dividends etc. Moreover it is asking me to select a % figure from the drop down list. How do I work out the % ? If I say Yes to Do you wish to claim foreign credit then does that imply that Foreign tax taken off or paid must be entered as 0 to avoid double tax relief? Look forward to your reply. Thanks :-)

Hi SK,
As different rates apply for different incomes, you will need to work out the amount of tax that has been paid abroad for each source in order to claim.
The drop down boxes for the rates also depend on the country in which the income is from as there will be a maximum allowed.
Please see further guidance at Relief for Foreign Tax Paid 2023 (HS263)
Thank you.