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Posted 6 days ago by A AlvL
What happens if I add enough money into my SIPP pension to get tax relief and end up with no tax due, but I have already paid tax abroad? I am a freelance designer based in the UK and work for a company based in India so I get 15% taken off at source which I then use as tax relief credit on my self assessment. I would end up with money owed to me so would I be able to get that tax back or not as the payment was made to India? or is the only solution to pay only an amount to the SIPP which means my tax due minus the foreign tax already paid leaves me at cero rather than owed money?
Posted 3 days ago by HMRC Admin 17 Response

Hi ,
 
A foreign tax credit can only be set against a UK tax liability on that income. 

If there is no UK tax liability, then there is no foreign tax credit.

Thank you .

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