Czarek

Thank you very much, Admin, for your answer. Sometimes when I select the "Rate of tax credit relief allowed" option of 10%, I get this warning on your website: "WARNING: Make sure you have selected and entered the correct amount of Foreign Tax Credit Relief. Select the percentage rate from the list provided." It was only after several attempts over the course of a week that your system accepted this 10% option.

Hi Admin Article 10 of the UK/POLAND DOUBLE TAXATION CONVENTION, which concerns dividends, states: "(1) Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. (b) [...] may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the dividends." I understand that the FTCR rate cannot exceed 10%. I have a specific question in this regard: Which "Rate of tax credit relief allowed" should I choose from the options available online on the HMRC website when completing the "Dividends from foreign companies" section of my self-assessment/tax return for dividends received from Polish companies? Up to 10%, there are the following tax credit relief rates to choose from: 0%, 2%, 3%, 5%, 7%, 7.5%, 8%, 10%. Please tell me which option I should choose in my case.

Admin's response: "Posted 8 months ago by HMRC Admin 32 The drop down is in order to show the maximum relief that can be claimed. As relief is restricted to the UK tax that is due on the same source, you may not actually get 15%. " My question for Admin's answer:: As foreign tax credit relief is restricted to the UK tax that is due on the same source, which is 8.75% in case of dividends, why isn't there an option in the online self-assessment form of 8.75% for FTCR? I can only choose the 8% option and therefore have to pay double tax of 0.75%. So isn't this an error on the HMRC website due to the lack of an update on the dividend tax rate in the UK? (I wanted to point out that I pay tax on Polish dividends of 19%)