Tax_lover

Hello, I have another question/example that has not yet been covered. I am also a US citizen living in UK and therefore subject to both US and UK tax. 2023 US tax year, my spouse and I have a combined tax form 1) $26,700 - Capital Gains from selling stocks and shares (joint account) 2) $4,000 - Dividends (joint account) Subtotal $30,700 3) $27,700 - Standard Deductible So $3,000 Taxable income. And $450 in taxes. My questions: 1) For the self-assessment, the foreign income and the foreign tax in the US needs to be allocated 50% to me and my partner. correct? 2) Next, How should the foreign US taxes be input in the self assessment? Does it matter if the tax relief is put entirely into say the dividend tax relief? Thank you!

Hello, I have a few clarification that were not answered by this thread: I am also a US citizen living in UK and therefore subject to both US and UK tax. 1) In the approach described above where income from the USA calendar year (eg 2023) is applied to the UK financial year (eg 2023/24), 1a) Does HMRC have a published yearly average exchange rate for sterling/dollars or should US citizens use the IRS published table with average exchange rates? Or should it all be converted from 31 December exchange rates? 1b) For the UK foreign tax relief from US taxes paid, what date should be used for the sterling/dollar conversion? i) It could be the average conversion rate for the US tax year, ii) the date that the transaction happened, or iii) 31 December (the end of the US tax year) or iv) April 16 (the date that the taxes would typically be due) 2) Another method of calculating US foreign income is to identify the US income transactions that were within the UK tax year. These then could be individually converted to sterling using the date-specific sterling/dollar exchange rate. 2a) For the UK foreign tax relief from US taxes paid, what date should be used for the sterling/dollar conversion? i) It could be the average conversion rate for the US tax year, ii) the date that the transaction happened, or iii) 31 December (the end of the US tax year) or iv) April 16 following the US tax year (the date that the taxes would typically be due) v) The tax paid could be proportioned to the individual gains and then converted to sterling date-specific sterling/dollar exchange rate.