INTM164460 - UK residents with foreign income or gains: dividends

Determination of rates of foreign underlying tax - information provided by UTG

The UTG will consider the rate of underlying tax arising on a Case V dividend following a submission under INTM164440 or a request from the company. It will then supply to the district:

a) Confirmation of the amount of the dividend, in the appropriate foreign currency;

b) The actual rate of underlying tax paid on this (to calculate the amount assessable under Case V);

c) For dividends paid to the UK on or after 31 March 2001, a capped rate of underlying tax if the mixer cap has restricted the amount of foreign tax credit due;

d) If appropriate:

• the amount of Eligible Unrelieved Foreign Tax (EUFT)arising on a mixed dividend or;
• a reminder that EUFT arises on an unmixed dividend and this should be calculated by the district

INTM164470 onwards give examples of computations.