Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • lifemagic
    • By lifemagic 25th Sep 18, 4:08 PM
    • 110Posts
    • 23Thanks
    lifemagic
    Reporting 'foreign' etfs on self assessment
    • #1
    • 25th Sep 18, 4:08 PM
    Reporting 'foreign' etfs on self assessment 25th Sep 18 at 4:08 PM
    I have various etfs in 2 accounts, ones on LSE with Halifax and ones on the US markets with IG (uk division) and filled in w8ben with them. The etfs are all vanguard or ishares, except a couple.

    I printed the tax certificates and Halifax lists most of the ishares on LSE as Non-UK equity, I'm guessing they are based in Ireland.One of them is listed as 'overseas unit trusts and other investment funds.'

    I phoned the tax office and they said to report it as foreign income on the 'foreign supplement'.

    So.... I need to check where every single investment I own is domiciled, total it up by country, and list each county code. It's based on domicile of the etf, not it's focu?. So my ishare etf ftse100 dividend is a foreign dividend from Dublin? Is this included in the dividend allowance?

    Btw, I'm non resident claiming a personal allowance based on citizenship.
Page 1
    • londoninvestor
    • By londoninvestor 25th Sep 18, 6:14 PM
    • 549 Posts
    • 454 Thanks
    londoninvestor
    • #2
    • 25th Sep 18, 6:14 PM
    • #2
    • 25th Sep 18, 6:14 PM
    Btw, I'm non resident claiming a personal allowance based on citizenship.
    Originally posted by lifemagic
    Was this clear to HMRC when you called them? If you're not tax-resident in the UK, you shouldn't need to pay tax on foreign income - and dividends from foreign-domiciled shares are foreign income.

    HMRC page on "Tax on foreign income"

    Non-residents only pay tax on their UK income - they donít pay UK tax on their foreign income.
    by HMRC
    Supposing you were a UK resident:
    • Yes, you need to total up the dividends by the country of domicile of the ETF
    • Your £2k dividend allowance can be used against foreign as well as UK dividends
    • You can claim Foreign Tax Credit Relief, if the UK has a double taxation treaty with the country of the ETF, to bring your tax down to the higher of UK tax or the foreign country's tax
    • You need to include the excess reportable income as well as the dividend itself
    • orcadian
    • By orcadian 13th Jan 19, 5:31 PM
    • 39 Posts
    • 0 Thanks
    orcadian
    • #3
    • 13th Jan 19, 5:31 PM
    Reporting "foreign" ETFs on UK self assessment
    • #3
    • 13th Jan 19, 5:31 PM
    For a UK investor whose "foreign" ETFs (well known one, begins with i) are all based in Dublin. No foreign tax taken off the dividends.
    You add up the dividends and the excess reportable income.
    The whole thing totals less than your £2k dividend allowance.
    You have no other dividend income.
    Any need to report this as foreign income on the 'foreign supplement'?

    Or just leave that section blank as your income is less than dividend tax allowance?
    • londoninvestor
    • By londoninvestor 13th Jan 19, 6:07 PM
    • 549 Posts
    • 454 Thanks
    londoninvestor
    • #4
    • 13th Jan 19, 6:07 PM
    • #4
    • 13th Jan 19, 6:07 PM
    For a UK investor whose "foreign" ETFs (well known one, begins with i) are all based in Dublin. No foreign tax taken off the dividends.
    You add up the dividends and the excess reportable income.
    The whole thing totals less than your £2k dividend allowance.
    You have no other dividend income.
    Any need to report this as foreign income on the 'foreign supplement'?

    Or just leave that section blank as your income is less than dividend tax allowance?
    Originally posted by orcadian
    You need to report it, because even a dividend income of less than £2k can affect other parts of your tax (personal allowance withdrawal, child benefit charge etc).

    However if the foreign dividends total less than £300, and you're not claiming Foreign Tax Credit Relief for any tax that was taken from them abroad, you can bundle them in with the UK dividends without completing the "foreign" section of the tax return. (link to HMRC instructions)
    • londoninvestor
    • By londoninvestor 13th Jan 19, 6:09 PM
    • 549 Posts
    • 454 Thanks
    londoninvestor
    • #5
    • 13th Jan 19, 6:09 PM
    • #5
    • 13th Jan 19, 6:09 PM
    Also, a recent related thread.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,765Posts Today

9,551Users online

Martin's Twitter
  • Perhaps the only thing we truly learn from this poll is we are generally optimistic. Most Brexiteers think Brexit w? https://t.co/DoosVRvneE

  • RT @MoneySavingExp: ??Join the UK's biggest consumer website ??Make a difference ??Work with brilliant journalists ??Collaborate with top b?

  • Today's Twitter poll: Do you believe the UK will leave the European Union in 2019? PS. Twitter/my following tends? https://t.co/U3DknxaJOG

  • Follow Martin