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Where Taxpayers and Advisers Meet

Trivial amounts of foreign dividend income

someone
Posts:689
Joined:Mon Feb 13, 2017 10:09 am
Trivial amounts of foreign dividend income

Postby someone » Sun May 15, 2022 9:12 am

For the 2021-22 tax year, for the first time, I have some foreign dividend income.

I have to do a tax return and I'm an additional rate taxpayer.

I haven't tried to calculate the GBP effect yet but the _total_ income is circa 50 USD - four payments of around 12USD which were reinvested.

Is there any trivial amount/allowance that avoids me having to put this on my tax return or can I put in an estimate (say 50GBP) in the whitespace (or somewhere else) and avoid having to do this properly, lookup exchange rates etc and fill in the foreign pages?

I haven't yet got my p11d but without that (new job in 2021-22, previous job benefits were payrolled, so I don't have a good feel for what it's going to be) I'm owed around 400GBP by HMRC. I'm interested in saving effort, not money for this (and if it's all too much effort it seems like a good reason to sell or give away the shares before I get any dividends in 2022-23)

D&C
Posts:153
Joined:Mon Nov 25, 2019 11:35 pm

Re: Trivial amounts of foreign dividend income

Postby D&C » Sun May 15, 2022 10:21 am

You might find it useful to have a read of TRG3 in the SA100 tax return guide.

It looks like this situation is covered by being able to use the UK dividends box.

Remember that this income, say £50, will form part of your adjusted net income. Probably irrelant if you are an additional rate payer but worth noting.

And it will get taxed, but depending on your other dividend income it may well be at the dividend nil rate.

someone
Posts:689
Joined:Mon Feb 13, 2017 10:09 am

Re: Trivial amounts of foreign dividend income

Postby someone » Sun May 15, 2022 10:58 am

Many thanks! I've found those notes and while I'm not sure I 100% understand - for example, what the difference between tax credit relief and deduction relief on page TRG 6, I'm pretty sure I can get this "right enough" to, at worst, pay a few pounds too much tax than I strictly need too - which I'm not greatly concerned about.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Trivial amounts of foreign dividend income

Postby maths » Sun May 15, 2022 4:48 pm

Given the small amounts I would be disinclined to complete the Foreign pages. Not worth the hassle.

The reference on TRG 6 is really where there may be significant foreign income and claiming foreign tax credit relief will be more tax effective than simply claiming a deduction (ie not a credit). Basically irrelevant in your case.


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