SA100 foreign div tax calculation query

caper7

Hi,

Quick query.

In my tax calculation they start by listing income amounts before tax.
For normal dividends this means they add back on the 10%tax credit.
My foreign dividend was £70 and foreign tax was £17, I therefore expected them to list an amount of £87, but it was £77.

I suspect I may have figured out a possible reason why (they probably can't add back the foreign tax but credit you with the 10% it would be in the UK) is this the case?

I would appreciate any explanations.

(The foreign dividend being a small amount is on the main tax return.)

John_Pierpoint

Are you using the on-line system or the paper forms ?

Are you likely to be a higher rate tax payer ?

caper7

Paper return.
Basic rate tax payer.

John_Pierpoint

I don't know, but I would guess that when Santander took over Abbey ans Alliancew and Leicester the tax man ended up with literally millions of tax payers with foreign dividends so they had a quick flap round and decided that if the divident was less than £300 they would let sleeping dogs lie, for standard rate tax payers.