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Posted Wed, 09 Aug 2023 22:20:13 GMT by KuenHK
Hi, all I have foreign dividend income which is more than the dividend allowance and so need to be declared in my self assessment tax return (SA100) with supplementary page of Foreign SA106. I would like to know if the total amount of dividends being declared in the form is the total of "actual amount" of dividend being received into my bank account after deduction by the individual bank's charging fee for each transaction, Or, it should be the total of "original amount" of dividends distributed by the company to me. For my above concern, HMRC's advice is highly sought, please, so that I won't be either under reporting or over reporting for my dividend income in the tax year. Also, some of my dividend amounts being received involve 10% withholding tax of the original amount of dividends to be taken off as corporation tax before the dividends reaching to my bank account (that is, actual dividends received = "original dividend amount" minus "10% withholding tax taken off", and also minus "the bank's charging fee"). Regarding this deduction rule, HMRC's advice (answer) is very important for my dividend reporting (declaration) in the tax return. Thank you.
Posted Tue, 15 Aug 2023 14:24:22 GMT by HMRC Admin 10
It is the original amount of the distribution that you declare and you will show the witholding tax in order to claim foreign tax credit relief - Tax on foreign income
Posted Tue, 15 Aug 2023 16:45:05 GMT by KuenHK
As advised by HMRC above, the withholding tax amount can be shown in SA106 and claimed back via foreign tax credit relief. But, I wonder if I could declare the amount of dividend that I received after deduction of the bank charging fee for each transaction of receiving that dividend. In case the above is not allowed by HMRC, then I think my declaration on the amount of dividends for the tax return will be over reporting than what I actually received into my bank account for tax purpose. Personally, it sounds unfair to declare the original amount of dividends with no deduction of bank fee accepted (except claiming the withholding tax) while filing the tax return. Please advise as appropriate. Thank you.
Posted Thu, 17 Aug 2023 11:13:00 GMT by HMRC Admin 25
Hi KuenHK,
It is the amount of the original dividends as currency transactions fees are not deductable.
Thank you. 


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