Home For accounting professionals Tax

Self assessment of Foreign Dividend income

Sam44Sam44 Registered, FMAAT 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
Sign In or Register to comment.