Foreign pages on SA - questions on foreign stock holdings

wmb194

itwasntme001 said:

wmb194 said:

itwasntme001 said:

wmb194 said:

itwasntme001 said:

I am completing my self assessment for 24/25 and need to complete the foreign pages.  I have some questions on 2 companies I own - BABA which is an ADR traded in the US and Brookfield (BN) which is traded in the US as a common stock.  Both in a GIA account.

1) for BABA there is dividend paid out and an ADR fee taken from this dividend such that I receive the net amount.  What do I enter for amount received before tax i.e. column B?  The amount before the fee or amount net of fee?  Essentially is the ADR fee tax deductible?

2) for BN, since this is a canadian company (but traded in US exchanges) I can see that a 25% tax rate has been applied on the dividend and so I have received the net amount after this tax.  The holding is with interactive investor and there is no Canadian version of WBEN form filled in, and I do not think you can do this with ii (although not sure - you can with AJbell).  Does this mean I can not get foreign tax credit relief and so not only have I been taxed at 25% canadian tax but will be dividend taxed in the UK on this gross (or is it net?) amount?

TIA.

1. The ADR fee isn't deductible. 2. You can claim tax relief at the UK-Canada treaty rate - 15%. You can try reclaiming the balance from the Canadian tax authorities - Canada keeps 15% - but for small amounts it might not be worth the effort.

Thanks.

For 2., I never filled in the W8-BEN equivalent for Canada, so does the 15% tax relief claim still apply?

Also, in the foreign pages of the SA, do I put in the actual tax paid (25%) for column C (tax paid) or 15% of the gross?

You can still claim the relief, after all you've paid the tax, but only up to the treaty rate. HMRC doesn't care what foreign forms you have or have not completed.

I use tax software to complete my returns; check what it says in the Foreign Pages notes.

Thanks, this makes sense now, so for Canada I put 15% as the max I can claim (but actual credit is at 8.75%).

For Guernsey and Cayman, what masonic implied that since there is no foreign tax paid, there can not be any credit.  But is it as simple as that, doesn;t it depend on what the treaty itself says?

Was any tax withheld? If not, how could you claim relief? Guernsey definitely doesn’t have any dividend withholding tax and IIRC the Cayman Islands doesn’t either so it is as simple as that.

itwasntme001

wmb194 said:

itwasntme001 said:

wmb194 said:

itwasntme001 said:

wmb194 said:

itwasntme001 said:

I am completing my self assessment for 24/25 and need to complete the foreign pages.  I have some questions on 2 companies I own - BABA which is an ADR traded in the US and Brookfield (BN) which is traded in the US as a common stock.  Both in a GIA account.

1) for BABA there is dividend paid out and an ADR fee taken from this dividend such that I receive the net amount.  What do I enter for amount received before tax i.e. column B?  The amount before the fee or amount net of fee?  Essentially is the ADR fee tax deductible?

2) for BN, since this is a canadian company (but traded in US exchanges) I can see that a 25% tax rate has been applied on the dividend and so I have received the net amount after this tax.  The holding is with interactive investor and there is no Canadian version of WBEN form filled in, and I do not think you can do this with ii (although not sure - you can with AJbell).  Does this mean I can not get foreign tax credit relief and so not only have I been taxed at 25% canadian tax but will be dividend taxed in the UK on this gross (or is it net?) amount?

TIA.

1. The ADR fee isn't deductible. 2. You can claim tax relief at the UK-Canada treaty rate - 15%. You can try reclaiming the balance from the Canadian tax authorities - Canada keeps 15% - but for small amounts it might not be worth the effort.

Thanks.

For 2., I never filled in the W8-BEN equivalent for Canada, so does the 15% tax relief claim still apply?

Also, in the foreign pages of the SA, do I put in the actual tax paid (25%) for column C (tax paid) or 15% of the gross?

You can still claim the relief, after all you've paid the tax, but only up to the treaty rate. HMRC doesn't care what foreign forms you have or have not completed.

I use tax software to complete my returns; check what it says in the Foreign Pages notes.

Thanks, this makes sense now, so for Canada I put 15% as the max I can claim (but actual credit is at 8.75%).

For Guernsey and Cayman, what masonic implied that since there is no foreign tax paid, there can not be any credit.  But is it as simple as that, doesn;t it depend on what the treaty itself says?

Was any tax withheld? If not, how could you claim relief? Guernsey definitely doesn’t have any dividend withholding tax and IIRC the Cayman Islands doesn’t either so it is as simple as that.

I was thinking in terms of relief on the 8.75% tax I have to pay on the dividends received from Guernsey/Cayman.

Or are credit reliefs only come into play if tax is actually paid to the foreign country?

wmb194

itwasntme001 said:

wmb194 said:

itwasntme001 said:

wmb194 said:

itwasntme001 said:

wmb194 said:

itwasntme001 said:

I am completing my self assessment for 24/25 and need to complete the foreign pages.  I have some questions on 2 companies I own - BABA which is an ADR traded in the US and Brookfield (BN) which is traded in the US as a common stock.  Both in a GIA account.

1) for BABA there is dividend paid out and an ADR fee taken from this dividend such that I receive the net amount.  What do I enter for amount received before tax i.e. column B?  The amount before the fee or amount net of fee?  Essentially is the ADR fee tax deductible?

2) for BN, since this is a canadian company (but traded in US exchanges) I can see that a 25% tax rate has been applied on the dividend and so I have received the net amount after this tax.  The holding is with interactive investor and there is no Canadian version of WBEN form filled in, and I do not think you can do this with ii (although not sure - you can with AJbell).  Does this mean I can not get foreign tax credit relief and so not only have I been taxed at 25% canadian tax but will be dividend taxed in the UK on this gross (or is it net?) amount?

TIA.

1. The ADR fee isn't deductible. 2. You can claim tax relief at the UK-Canada treaty rate - 15%. You can try reclaiming the balance from the Canadian tax authorities - Canada keeps 15% - but for small amounts it might not be worth the effort.

Thanks.

For 2., I never filled in the W8-BEN equivalent for Canada, so does the 15% tax relief claim still apply?

Also, in the foreign pages of the SA, do I put in the actual tax paid (25%) for column C (tax paid) or 15% of the gross?

You can still claim the relief, after all you've paid the tax, but only up to the treaty rate. HMRC doesn't care what foreign forms you have or have not completed.

I use tax software to complete my returns; check what it says in the Foreign Pages notes.

Thanks, this makes sense now, so for Canada I put 15% as the max I can claim (but actual credit is at 8.75%).

For Guernsey and Cayman, what masonic implied that since there is no foreign tax paid, there can not be any credit.  But is it as simple as that, doesn;t it depend on what the treaty itself says?

Was any tax withheld? If not, how could you claim relief? Guernsey definitely doesn’t have any dividend withholding tax and IIRC the Cayman Islands doesn’t either so it is as simple as that.

I was thinking in terms of relief on the 8.75% tax I have to pay on the dividends received from Guernsey/Cayman.

Or are credit reliefs only come into play if tax is actually paid to the foreign country?

BIB, correct. Claiming tax relief from HMRC on tax to be levied by HMRC is Inception level.