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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5112
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have got some foreign dividends this year. they range from

Customer Question

I have got some foreign dividends this year. they range from USA, Netherlands, France and a few others.
When filling gout myself assessment on line, it asks me if I want to claim overseas tax relief and at what rate. I am assuming I do as otherwise I will be double taxed but what rates do I put in?
Are my overseas dividend still eligible for the 10% dividend credit?
Submitted: 2 years ago.
Category: Tax
Expert: replied 2 years ago.
Thank you for your question.You need to put an X in the box that states (to claim foreign tax credit relief).Tax deducted at source as shown on dividend voucher would be added to the amount received and you would get a tax credit of max 10% (same as if you had received it from UK company).More information on this can be found on page FN6 of SA106-Foreign notes here 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 2 years ago.
Many Thanks for your response. The fact sheet you provided details for if I am filling out a paper form and sending it to HMRC. It says 'You do not have to work out the FTCR yourself.
We will do this for you if you complete other
relevant boxes and send your tax return by the
filing date. Only fill in box 2 if you want to
calculate the FTCR yourself. ' but I am filing out the form online and it is specifically asking me to fill in the amount of overseas tax relief I am claiming. How do I know this?
Expert: replied 2 years ago.
Thank you for your reply. You should put in both values .. the dividend received and the value of foreign tax suffered (tax credit on dividends paid) in respective boxes.I hope this is helpful.
Customer: replied 2 years ago.
It hasn't helped I'm afraid, I have put the dividend received in the 'Amount of income arising or received before any tax taken off:'
I have entered the amount of 'Foreign tax taken off or paid'It then asks 'Do you wish to claim foreign tax credit relief' I have ticked yes.It then asks me the 'Rate of Tax Credit relief allowed: and gives me a drop down box with various different % amounts. How do I know which one I need to choose?Thanks
Expert: replied 2 years ago.
Thank you for your reply..The third party software I use just requires me to put an X in the box "To claim foreign tax credit relief put X in the box" and input foreign tax suffered.You say you get a drop down box with various different % amounts.. Can you kindly state what they are or send me an image of the page?The maximum tax credit available is 10%. Many thanks