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Can you change treatment of foreign tax payment?

Can the treatment of the tax be changed from an expense to claim Foreign Tax Credit Relief

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My clients' previous accountant treated the foreign tax paid (on Australian property income) as an expense but this year it will be more tax efficient for them to claim it as Foreign Tax Credit Relief. They meet the other criteria for being eligible for this relief so just wanted to confirm there's no restrictions and I can simply change treatments year on year. Thanks

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By Wilson Philips
13th Sep 2019 21:34


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By penelope pitstop
14th Sep 2019 15:57

What % rate of Australian tax is deducted, and what is the top rate of UK income tax for your client.

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Replying to penelope pitstop:
14th Sep 2019 21:46

32.5% for both Australian and top UK tax. Is this a factor? I already know it'd be more tax efficient to claim ftcr.

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Replying to ADDAS:
By Tax Dragon
15th Sep 2019 09:40

ADDAS wrote:

Is this a factor?

Top rate of UK tax? No. UK tax liability on the source in question? Yes. Consider someone with income from property of £10,000 (overseas tax paid £3,000), dividend income of £50,000 and nothing else.

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