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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5028
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am a foreign national and 100% of my income is derived from

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I am a foreign national and 100% of my income is derived from dividends which are paid into my UK bank account by a company overseas, in which I own shares. When the payments are made to me, a 10% tax is paid on the dividend in the resident country (which has a double taxation agreement with the UK). I would like to know whether this income can/should be declared as dividend income and if so, can I claim relief on the 10% already paid at source?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question..You should declare this income by completing supplementary pages SA106-Foreign.You should also complete the section Foreign tax deducted.You claim foreign tax credit relief against foreign tax suffered on this income in resident country (look at Page FN6 of SA106-notes.You can download/view SA106 and the notes that accompany this section herehttps://www.gov.uk/government/publications/self-assessment-foreign-sa106 I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond
Customer: replied 1 year ago.
Thank you for your quick response. Yes I do have a couple of questions which I should have included initially. As this is dividend income, will it be taxed at the UK tax rates for dividends or will it be taxed at the normal income tax rates? In addition, what will my national insurance band be if the gross amount was £76,803 (before the Tax was deducted overseas)?Thanks in Advance!
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question...
Dividend income will be taxed at UK tax rates for dividends and not at normal income tax rates.
Dividend rates at
Basic rate payers - 10%
Higher rate payers - 32.5% (any amount over the basic rate threshold of £31,785 after personal allowances)
There is no national insurance payable on investment income.. NI is payable on earned income only.
I hope this is helpful.
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Expert:  taxadvisor.uk replied 1 year ago.
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