Self assessment of Foreign Dividend income

Sam44
Sam44 Registered Posts: 1
When an individual is domiciled and resident in the UK and receives income as dividends from a non-UK company when are the dividends to be declared for UK tax self assessment? The income is of an amount that requires Foreign Income pages to be completed. I have a date on the div voucher as 1 March 2020 but the monies were actually received in June 2020 i.e. after the 19-20 tax year. HMRC states in its Foreign Income Notes (2020) "dividends from foreign companies (use the details on your dividend voucher)" which would imply to me that the income should be entered in SA 19-20 as an actual payment date isn't shown on the voucher.

However in Tolley's 'Foreign Dividends' it states:
Those who are resident and domiciled or deemed domiciled in the UK are taxable on their worldwide income (and gains) in the tax year in which these are received and should declare these on their Tax Returns. This means they are taxed when the foreign dividends are paid to them, for instance, by being credited to a bank account.

This would mean the dividend income would be declared on SA tax return year 20-21

I would be grateful for any advice concerning this issue. Thank you

Comments

  • Jagz1234
    Jagz1234 Registered Posts: 13
    The tolley guide is giving the definition of the arising basis. This is how all uk resident individuals are taxed subject to the domicile

    it depends on whether the dividend is an interim or final dividend - interim dividends are treated as distributed when they are paid, final dividends are treated as distributed when they are declared, or the date on which they are due to be paid if that is specified in the resolution declaring the dividend.

    You then need to consult the relevant dta to see if it is taxable in the uk I would be very surprised if it wasn’t.

    You declare on the foreign pages.

    Claim a foreign tax credit the lower of the uk tax suffered or foreign tax subject to the dta cap.
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