Self Assessment Tax Return Foreign Dividends

handylady

I'm in the process of filing my self assessment tax return on line. I have a foreign dividend which is just over £300 and therefore necessitates filling in a supplementary foreign page entitled “Dividends from Foreign Companies”..
Here are the questions it's asking


Your ref for this income - I have filled in Name of the company

Country - Australia
Amnt of income arising or rec'd
before tax taken off - I have filled in this amount

Special withholding tax and any UK tax taken off - Nil

Do you wish to claim foreign tax credit relief - Yes
Taxable amount - Here there is a dropdown with %'s from 0 % to 25% and I have no idea which % to enter


On the dv counterfoil is says “This dividend is 100% franked at the Company tax rate of 30% “


Any help on this would be much appreciated.

dtaylor84

See here: http://www.hmrc.gov.uk/manuals/dtmanual/dt2657.htm

and the referenced definitions here: http://www.hmrc.gov.uk/manuals/intmanual/intm164010.htm

As far as I can tell, if you are a "portfolio investor" (and don't own a significant percentage of the shares in the Australian company) you are not entitled to any Foreign Tax Credit Relief, and owe UK income tax on the net amount of the dividend.