UK 10% tax credit on foreign dividend income

UK 10% tax credit on foreign dividend income

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Is there any easy way to find out which foreign dividends qualify for the UK 10% tax credit?

I've received several tax packs for clients from fund managers which detail, amongst other things, foreign dividend income sources and country relating to those sources.  However, the next question is which ones meet the HMRC definition for a fund which the UK investor can claim a UK 10% tax credit for.  From what I understand from HMRC guidance (and please correct me if I am wrong) in short this means you need to know if they meet the definition of an 'offshore fund' which means you can't claim it, unless it is an 'equity based' offshore fund, in which case you can and then there are other conditions to check too.  Is there an obvious way to determine this? 

I have had mentioned to me by one of the fund managers that a lot of accountancy firms (and he mentioned the big ones rather than smaller firms) use a spreadsheet based software package.  Does anyone have experience of these?

Am I making a big deal out of something that is actually quite straightforward to determine?

Thought and comments are appreciated.

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By Banzai
27th Jul 2011 10:56

Revenue approved list

http://www.hmrc.gov.uk/offshorefunds/dist_fundlist.htm

I guess this is what is being referred to

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By CathyB
28th Jul 2011 09:50

Foreign dividends

That list is qualifying distribution funds.  For foreign dividends generally, see pages FN7 and FN8 of the tax return notes re SA106.

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