Dividends from foreign companies

This section is used to enter foreign dividends received. You should add a section for each country from which dividends were received.

All amounts of foreign income received and foreign tax paid must be entered in sterling.

In most circumstances foreign income only needs be declared where the taxpayer is resident in the UK for all or part of the tax year. Do not enter foreign income if the taxpayer is non-resident as Taxfiler by IRIS will include all entered income on the return and computation.

Foreign dividends on the SA100

In some circumstances, foreign dividends can be included on page 3 of the SA100 form, instead of including the SA106 foreign pages:

  • Where foreign dividends are the only foreign income entered and

  • the amount received is less than £300 (for tax years prior to 2020/21) and £2,000 for 2020/21and

  • foreign tax credit relief is NOT being claimed and

  • the dividends qualify for UK tax credits.

Dividends from foreign companies

  • Country - enter the name of the country from which the dividends were received.

  • Claim Foreign Tax Credit Relief? - tick the box to claim foreign tax credit relief for any foreign tax suffered. If not ticked, foreign tax will be deducted from the income.

Dividends are entered via a grid

  • Description of income - enter a brief description of the dividend received.

  • Gross income arising - enter the gross amount of the dividend before any foreign tax or UK withholding tax was taken off.

  • Foreign tax taken off - enter the amount of foreign tax suffered.

  • UK tax taken off - enter the amount of UK tax taken off.

  • Taxable amount - this column will show the taxable amount after deducting any foreign tax that is not being claimed via foreign tax credit relief.

  • Pre 2016 dividend remitted this year? - tick this box if the dividend was received before the 2016 tax year but remitted to the UK in the current tax year. Ensure that the Remittance basis data input section is also completed.

To delete a line from the grid, select the ‘trash can’ icon at the end of the line.