INTM164460 - UK residents with foreign income or gains: dividends: Determination of rates of foreign underlying tax - information provided by UTG

»Ê¹ÚÌåÓýapp UTG will consider the rate of underlying tax arising on a foreign dividend following a submission under INTM164440 or a request from the company. It will then supply to the relevant office within HMRC:

a) Confirmation of the amount of the dividend, in the appropriate foreign currency;

b) »Ê¹ÚÌåÓýapp actual rate of underlying tax paid on this (to calculate the amount assessable as foreign income);

c) For dividends paid to the UK on or after 31 March 2001, a capped rate of underlying tax if the mixer cap has restricted the amount of foreign tax credit due;

d) If appropriate:

  • the amount of Eligible Unrelieved Foreign Tax (EUFT)arising on a mixed dividend or;
  • a reminder that EUFT arises on an unmixed dividend and this should be calculated by the local tax office

INTM164470 onwards give examples of computations.

»Ê¹ÚÌåÓýapp legislation relating to EUFT was repealed for distributions paid on or after 1 July 2009.