Banco Santandar Share dividend other Foreign dividend income and SA100 Does anybody Know?

sharepicker

So much confusing advice surrounding foreign dividend income especially Santandar - there must be thousands of people still holding these from the old Abbey National days - surely somebody can demonstrate the correct way to enter the figures on a tax return? Assuming the dividend amount is above £500 - In my case I have nearly £900 before tax deducted (£180) by Spain so it would be worth getting some back if possible. So: 

1) can you or can't you claim tax relief on the amount deducted by Spain under Double Tax Agrreement (DTA)?

2) And if the answer is you can  On the foreign Income page what percentage do you enter in the box under the percentage. the way I read it either 15% as set out for DTA with Spain or (assuming being basic tax payer of 20%) 20% - 15% which equals 5%. Or am I getting it all wrong?

It seems strange that doing a search here and general Inter-webby thing the Santandar share dividends and UK is a complete mess with no clear guidance to be found  

DRS1

I thought it was the % set out in the DTA.

sheramber

sharepicker said:

So much confusing advice surrounding foreign dividend income especially Santandar - there must be thousands of people still holding these from the old Abbey National days - surely somebody can demonstrate the correct way to enter the figures on a tax return? Assuming the dividend amount is above £500 - In my case I have nearly £900 before tax deducted (£180) by Spain so it would be worth getting some back if possible. So: 

1) can you or can't you claim tax relief on the amount deducted by Spain under Double Tax Agrreement (DTA)?

2) And if the answer is you can  On the foreign Income page what percentage do you enter in the box under the percentage. the way I read it either 15% as set out for DTA with Spain or (assuming being basic tax payer of 20%) 20% - 15% which equals 5%. Or am I getting it all wrong?

It seems strange that doing a search here and general Inter-webby thing the Santandar share dividends and UK is a complete mess with no clear guidance to be found  

refer to HMRC helpsheet 263

probate_slave

HMRC can't refund you more than the UK tax liability on the foreign income. As a basic rate taxpayer, the tax due on your Santander dividends is 8.75% of (£900 - £500) = £35.
This will be your FTCR and the amount of Spanish tax you can recover. Effectively you aren't required to pay any further tax on the dividends.

As you say, you do this on the Foreign pages at F2 & F3. I don't see any box where you are asked to enter the percentage, but if you are using commercial software you may be asked the maximum allowable rate.

The current DTA restricts Spanish dividend tax to 10% (reduced from 15% a decade ago), so relief is capped to that amount, despite the fact that Spain has deducted 19%. Of course it's not worthwhile to reclaim the missing 9% from the Spanish tax authorities.

DRS1

I seem to remember a drop down box with various percentages and you had to click on one of them. I think it was after you said you want to claim FTCR.  But I sold my Santander shares years ago.

probate_slave

Ah yes, of course, I had forgotten that. So the answer to OP's question 2 is 10% even though the actual FTCR will turn out to be much less.