obtaintaxadvice
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RE: How to claim reliaf on withheld taxes paid on foreign dividends?
Hi Nikitn, may I ask whether you were successful in doing so? Hi HMRC admin team, I am in the similar situation but with United States WHT that I hope you could help me with. I received US dividends from my US shares in my UK ISA account, theoretically I do not have to pay any UK tax on Dividends. I am a basic rate tax payer (but probably move to higher rate soon, is there a difference?) and I dont have any UK dividends income. 'Article 10(2)(b) of the UK and USA double taxation agreement allows for both countries to tax the dividends and limits Foreign Tax Credit Relief for dividends to a maximum of 15%'. Using a broker, my US dividends received is taxed at source at the reduced WHT rate of 15% (W8-BEN has been filled in which reduce the WHT from 30% to 15%.). As I filled out W8-BEN, the WHT rate has already been reduced by 15%, 1) may I ask whether I can still claim foreign tax relief on the US WHT tax at 15% which was deducted at source without declaring dividend income (ISA account)? or have I already claimed for foreign tax relief on the US WHT by completing the W8-BEN form. 2) If yes, I am assuming the foreign tax relief will reduce my income tax liability as a whole? Many thanks in advance.