IRIS will only calculate FTCR on capital gains made on or after the 6th April 2007; therefore this feature is disabled for all tax years before 2007-08.
Foreign Tax Credit Relief can be entered into the following areas of Capital Assets by selecting the FTCR option:
When the FTCR option is selected a new data entry window will display prompting you to enter the following information:
Field Name |
Description |
|
Gain under UK rules |
Enter the taxable gain under UK rules. If necessary run the Capital Gains computation to obtain the value for this field. |
|
Gain under foreign rules |
Enter the gain as taxable under the rules in the country from which it was disposed and taxed. |
|
Number of days UK gain accrued over |
Enter the number of days the gain accrued in the UK. |
|
Number of days foreign gain accrued over |
Enter the number of days the gain accrued in the other country. |
|
Foreign tax paid |
Enter the amount of foreign tax already paid. |
|
Special withholding tax* |
Enter any Special Withholding Tax deducted by the other country. |
* Special Withholding Tax (SWT) is an amount of tax withheld on certain payments to UK residents by some European Member States and related territories. This tax will be in addition to any foreign tax deducted. SWT is operated by certain territories as outlined in SA106 Notes on Foreign pages.
The fields Gain under foreign rules, Number of days UK gain accrued over and Number of days UK gain accrued over are no longer used from 2014 onwards.
The Capital Gains Foreign Tax Credit Relief report can be accessed from the Reports menu in Capital Assets, Personal Tax and Trust Tax.
The report details all disposals during the tax year and lists individually all the gains which have foreign tax credit relief claimed. The report will show the UK tax due on each chargeable gain after the annual exemption has been offset in the most beneficial manner (taking into account the rates of tax and the foreign tax credit relief available), how much foreign tax was paid and any foreign tax credit relief due.
The capital gains tax computation will deduct the total amount of foreign tax credit relief from the total liability at the end of the computation.