You should follow the procedure laid down in H263 - details below i could easily imagine that other sources of income MAY affect the results under some circumstances.The 15% foreign tax withheld on gross foreign dividends of £7548 is £1,133
I also have UK dividends received of £971
Therefore being taxed £5,000 at 0% and £3,519 at 32.5% tax is £1,143
Can I offset the foreign tax of £1,133 in full against the £1,143
https://www.gov.uk/government/publicati ... ncome-2017
How much you can claim
You can claim the smaller of:
foreign tax paid (or allowed by treaty)
UK tax due
Example 1
Elinor had £15 foreign tax taken off £100 foreign interest. She works out that the UK tax due (on the same item) is £20.
Elinor claims FTCR of £15 because the foreign tax paid is less than the UK tax due (£20).
If the UK tax had been £10, Elinor’s FTCR would also be £10, because the UK tax due is less than the foreign tax paid.
How to work out the UK tax due
The amount due is the difference between the:
UK tax due on your total income, plus the item with foreign tax taken off
UK tax due on your total income, without the item with foreign tax taken off
Example 2
Greg’s total income is £18,000, the tax due on this amount is £2,400.
He claims FTCR on a £200 item of foreign interest.
Total income £18,000 less foreign income £200 = £17,800.
The tax due on £17,800 = £2,360.
£2,400 less £2,360 = £40.
The UK tax due on £200 foreign interest is £40.