UK resident employed in the UK has earned dividends of around £2000 in Japan, is this taxable in the UK/ should it be included on the UK return? They are currently not registered for self assessment.
Yes but subject to foreign tax credit?
Replies (4)
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Are they a higher rate tax payer?
Is there tax deducted from the dividends and if so what percentage.
Foreign income
A UK tax payer receiving foreign income will need to complete a tax return.
Quote from HMRC: http://www.hmrc.gov.uk/taxon/foreign.htm "If you receive savings and investment income from abroad, you'll usually need to declare this on a Self Assessment tax return. You may have to pay UK Income Tax, but if you've paid foreign tax on the income you may be able to offset (deduct) this."
Make that
A UK tax payer receiving foreign income may need to complete a tax return.A UK tax payer receiving foreign income will need to complete a tax return.
Quote from HMRC: "If you receive savings and investment income from abroad, you'll usually need to declare this on a Self Assessment tax return. You may have to pay UK Income Tax, but if you've paid foreign tax on the income you may be able to offset (deduct) this."
The HMRC quote says:
"If you receive savings and investment income from abroad, you'll usually need to declare this on a Self Assessment tax return. You may have to pay UK Income Tax, but if you've paid foreign tax on the income you may be able to offset (deduct) this."
So if recipient is a BR taxpayer, the div does not take them into HR, and they have no other need to register there should be no need to complete, or indeed register for SA to make a return.
If they have been required to make a return by HMRC and are UK resident & domiciled then they should include them but will get a notional 10% UK tax credit, and if they are taxable at HR will get credit for the max Japanese WHT payable under the treaty