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Posted Wed, 05 Aug 2020 17:33:25 GMT by John Watson
I am a standard rate tax payer and last year received £2500 in dividends from US shares I hold, which were taxed at source. Am I entitled to any tax credit and if so how do I claim on the self assessment form.
Posted Thu, 06 Aug 2020 14:25:24 GMT by HMRC Admin 8
Foreign tax credit relief is given on non-UK income which has been charged to tax in the arising country, but you are also due to pay tax on in the UK.

The amount given will be the lower of amount already paid or the liability in the UK.

You would claim this by completing the foreign section of the self assessment tax return.

Posted Thu, 20 Aug 2020 16:47:33 GMT by John Watson
Thanks for your reply. Some of that dividend income is taxed twice,15% of all dividend income is withheld by the US, and subsequently anything above £2000 is also taxed here. Do I need to claim Foreign Tax Credit Relief when I fill out my self assessment, or is it done automatically? Regards
Posted Fri, 21 Aug 2020 08:21:12 GMT by HMRC Admin 8
Yes, where you need to declare your foreign income on your self assessment return, you would claim foreign tax credit relief to cover some of the tax which may be due on your US dividend income.

You would need to claim this on the foreign section of the return as it is not automatic. Not everyone who declares foreign income needs to claim foreign tax credit relief.


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