How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask taxadvisor.uk Your Own Question

taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4879
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

2015 tax return, I have dividends from company share

Resolved Question:

For 2014-2015 tax return, I have dividends from company share scheme. I was employed in UK but shares are in US company. I paid tax in US. I have declared dividends as foreign income. My returns calculator says I need to pay UK tax on the dividends. It says I can claim foreign tax credit but I dont know basis for that and highest number (25%) is less than tax paid in US.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question..The total of the UK tax credit plus foreign tax credit relief cannot exceed the UK tax chargeable on the dividend.You will find information on Page 3 (Foreign dividends) of HS263 helpful and the link is here (although it covers tax year 2013-14, its principle is same for 2014-15)https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323640/hs263.pdfHere is a link for current year ... look at example 3 and the working sheet (FTCRWS)https://www.gov.uk/government/publications/calculating-foreign-tax-credit-relief-on-income-hs263-self-assessment-helpsheet 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.Please only rate my answer if it is acceptable.
Customer: replied 1 year ago.
Thank you for your reply. I'm nearly there I think. Just a little remaining confusion. I have no UK tax credit. I paid gbp 2930 out of gbp 9765 income from dividends to US IRS (about 25%). Can I claim this as relief from UK HMRC in my return? Links are helpful. HMRC language is a bit opaque I find. Thanks. Mark.
Customer: replied 1 year ago.
.. sorry .. 30% calculator not 'about 25%' .. input error. UK foreign tax relief appears to be capped at 25%
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply...I am attaching a link to reclaiming withholding tax on foreign dividends.https://the-international-investor.com/investment-faq/reclaiming-withholding-tax-foreign-dividendsYour relief from UK HMRC would be limited to tax payable on the dividend income in the UK.I hope this is helpful.
Customer: replied 1 year ago.
I got a second response via email but when I try to open it via the link I get an error message: Sorry, the website www.justanswer.co.ukhttp cannot be found. It looks like address has an 'http' at the end.
Expert:  taxadvisor.uk replied 1 year ago.
Here is a copy of my response in my last posting ....Thank you for your reply...I am attaching a link to reclaiming withholding tax on foreign dividends.https://the-international-investor.com/investment-faq/reclaiming-withholding-tax-foreign-dividendsYour relief from UK HMRC would be limited to tax payable on the dividend income in the UK.I hope this is helpful.
Customer: replied 1 year ago.
so I have paid 30% tax in US and can claim 25% (max) tax relief from HMRC?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.The maximum you can claim is 25%.Please also look at examples 6 and 7 on Page 3 of HS263 I hope this is helpful
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4879
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Best wishes

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions