The question is less about tax credit relief and dividend allowances but more about the definition of a foreign company.
For the purpose of declaring the dividend in SA106 Does HMRC deem HSBC to be a foreign company when they pay dividends overseas and a UK company when they pay dividends in the UK
does HMRC consider that HSBC is a UK company no matter where the dividend is paid
are the guideline notes for the self assessment template in need of a re-write because using only the words foreign and UK to define a company does not reflect UK companies that are listed on foreign exchanges.
I own HSBC shares through the HK registry and my dividends are paid to my account in HK.
The dividend I received in 2022/23 was in excess of £2,000 but below £10,000.
HMRC’s tax guidance is that there are two types of dividend reportable:-
A) If the dividend is from foreign companies and exceeds £2,000.
B) If the dividend is from UK companies and exceeds £10,000.
There is no option for UK companies who pay dividends through a foreign registry.
My layman's belief is that HSBC Holdings pays the dividend out from an, after tax, central pot even if via an overseas subsidiary and whilst the IRD HK will not take tax on the dividend they will report it to the UK authorities under the CRS agreement.
HMRC were unable to clarify where it should be reported and I only have to complete a return if, in this case, HSBC are treated as a foreign company.
Any thoughts on whether it is reportable or not?