Foreign Tax Credit Relief (Remittance Basis)

Hi HMRC Admin I just want to confirm my understanding after reading the HS263 Am I correct to say that if I am claiming the remittance basis and I am not remitting any of the foreign income or capital gain to the UK, I do not have any foreign tax credit relief as the foreign tax credit in the UK, as per HS263, is the lower of the (1) foreign tax paid (or allowed by DTA) on income or capital gain (2) UK tax liability on the income or the capital gain Since I do not remit any of the foreign income or capital gain, I do not have any UK tax liability on the foreign income or the capital gain, hence my UK tax liability will be '£0', meaning that my foreign tax credit relief will also be '£0' as well. Please kindly advise if my understanding of the above is correct, or if I have missed anything? Many thanks! Best wishes, TC_UK

Hi,

With the remittance basis, Foreign Tax Credit Relief is only available for foreign income or capital gains that are remitted to the UK and have had foreign tax deducted from it. No Foreign Tax Credit Relief is allowable for foreign income or capital gains not remitted to the UK.

Thank you.