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Where Taxpayers and Advisers Meet

FTCR on property showing N/A

AlbertM
Posts:1
Joined:Tue Jan 16, 2018 8:03 pm
FTCR on property showing N/A

Postby AlbertM » Tue Jan 16, 2018 8:29 pm

Hi,

I'm doing self-assessment via the HMRC web page and I'm not convinced it has got the FTCR calculation right because it computes FTCR as zero. Looking for advice.

I have a property which earns rent, and share dividends, and some savings interest, all earned in Australia. FTCR on all three is being calculated as zero.
I have income over £200k, and pay income tax at the 'additional rate' of 45% (in case that is relevant).

Rental property: The figures for the rental property are:
  • Gross Income: £7196.00
  • Expenses: £1704.00
  • Net Income (Income-Expenses): £5492.00
  • Tax paid in Australia: £2143.00
If I select 'Y' to claim foreign tax credit relief the calculation page shows the rate of relief as 'N/A' (why?) and computes zero relief (why?).
If I select 'N' to claim foreign tax credit relief the calculation comes up with a taxable amount of £3349.00 (instead of £5492.00), and this works out about £1000 quid better for me. It also seems too good to be true. (Is it legal to select 'N'? Do I really get to choose?)

Interest: This totals £858. Foreign tax of £81 has been paid already. If I claim FTCR at 10% it computes zero tax relief. (Why?)

Dividends: These total only £423. I think zero tax has been paid on these, so I guess they show compute zero FTCR because of that?

In summary the dividends probably make sense, but I don't get the other two. Questions in red. Any advice on offer would be appreciated, as I haven't been able to get through on the HMRC helpline yet.

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