Foreign tax credit relief

Foreign tax credit relief

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Client has UK employment and Irish employment income. By way of example, tax deducted from foreign earnings of £18000 is £2000. Taking that he pays UK tax at 40% is he liable to pay additional uk tax of £5200 i.e £18000@40% = £7200-FTCR£2000? Or I'm I over-looking something?
B M

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Euan's picture
By Euan MacLennan
08th Sep 2006 10:02

UK resident ?
If your client is resident in the UK, your calculation looks correct.

If he is not UK resident, it depends on where he does the work. If his "Irish employment income" is paid for work done in Ireland, he would not be liable to UK tax on it.

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