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  • Dividend income from Australian shares

    I'm a UK taxpayer, resident in the UK. I own shares in several Australian companies (I inherited them). When dividends are issued, the notification includes a reference to franking crediMy understanding is that this is tax paid by the issuing company to the Australian authorities, on behalf of the shareholders receiving the dividend. Australian taxpayers who are resident in Australia are instructed to add the franking credit to the dividend received and declare that as the gross dividend. They then declare the franking credit as tax already paid on the dividend income. My question: given the treaty arrangements in place between the UK and Australia to help avoid double taxation, should I be doing the same when I declare the dividend income on my tax return? That is, can I declare the franking credit as tax already paid in Australia on the dividend income?