Foreign dividends

Use this form to enter details about payments from foreign dividends.

The following should not be included on the Foreign pages (SA106):

  • foreign income dividends received from a UK company
  • distributions made in the course of the liquidation of a foreign company
  • distributions that constitute a return of your capital interest in a foreign company
  • distributions made by a foreign company in the form of its own stocks and shares
  • stock dividends from foreign companies
  • bonus shares from a stock dividend issue made by a foreign company

Where a distribution was not made in the form of shares and the client accepted cash from the foreign company under an option given to them to receive cash instead of shares, the cash is taxable and should be entered on this form.

Option Description
Company name

Click the finder button to open the Company lookup window. Choose the company that issued the dividends.

The company name does not appear on the Tax Return, but must be completed in order to save the details entered on this page.
ISIN code

Click the finder button to open the Security Lookup window. Select the relevant security.

Note: You will only be able to use the lookup facilities if you have installed and subscribed to Sage Dividend Scheduling.
Security description This box will show the description of the chosen security.
Date obtained Enter when the dividend was obtained, if known.
Date disposed Enter when the dividend was disposed of, if known.
Country Click the finder button and select the country from which the dividend payment arose and in which tax was withheld at source when the dividend was paid.
Held jointly Select the check box if the income is shared. The person with whom it is shared does not have to be their spouse or a client within Personal Tax.
Client's share If the asset is held jointly, enter the percentage of income arising from the asset which is attributable to this client. You will only be able to enter a figure if Held jointly is selected.
Held jointly with another Personal Tax client Select the check box if the asset is held jointly and the co-holder is also a Personal Tax client of yours. You will only be able to select this box if Held jointly is selected.
Joint holder's name If the asset is held jointly and the co-holder is also a Personal Tax client of yours, then use the finder button to locate them. You will only be able to use this button if Held jointly with another Personal Tax client is selected.
Automatically update joint holder's details Select if the joint holder's information is to be updated with details entered here relating to income from this source. You will only be able to select this option if Joint holder's name has been selected.
Option Description
Claim tax credit relief

Select the check box if the client is claiming foreign tax credit relief for the dividend payment, or leave it clear if they are not.

This will be disabled if the Income is unremittable check box is selected.

If ‘Foreign tax’ needs to be restricted in the tax computation, amend the total Foreign tax credit relief claimed figure on the Foreign supplementary pages.
Income is unremittable Select the check box if the dividend income is unremittable. Unremittable income is income arising outside the UK which the client was unable to transfer (or remit) to the UK because of exchange controls or a shortage of foreign currency in the overseas country. The client can claim that the unremittable income should not be taxable.
Tax on remittance basis

Select the check box if the client is liable to tax on the remittance basis. This only applies to the client if they are claiming to be resident in the UK but are not domiciled in the UK.

If the client is liable to tax on the remittance basis you should only enter the amounts of income that they received in the UK. You should apportion any foreign tax paid as appropriate.

The remittance basis does not apply to:

  • gains under a policy of life insurance, life annuity or capital redemption policy, which are always taxable on the arising basis.
  • Republic of Ireland income from pensions, securities, stocks, shares and rent. The taxable amount of this income is the full amount arising and is not limited to amounts remitted, even if the client is not domiciled or not ordinarily resident in the UK

If you select this check box a claim to be taxed on the remittance basis should be made in the Personal Details form of the client.

See Residency Details for more information.
Include all foreign dividend income on the SA100, if applicable

Select this check box if you want foreign dividends of less than £1,000 to appear on the SA100 main return.

Foreign dividend income will be reported on the SA100 instead of SA106 when all of the following criteria are met :

  • Foreign dividend income is less than £1,000.
  • Dividends have not been specified as 'Income is unremittable'.
  • There is no other foreign income to be reported.

Do not select this check box if you are claiming tax credit relief in respect of foreign tax suffered on foreign dividend income.
Chargeable amount

This default amount is determined by whether foreign tax credit relief is being claimed or not.

If foreign tax credit relief is claimed this figure is the Dividend amount minus the amount of Foreign tax that has been charged.

If foreign tax credit relief is not claimed this amount is the default of the Dividend amount minus the amount of UK tax and Foreign tax that has been charged.

This is the Amount chargeable which is used in the Foreign supplementary pages (SA106).

Amount qualifying for dividend tax credit Where the remittance basis applies and some of the amount remitted relates to income arising on or before 5 April 2016, such amounts are treated as being subject to a notional 10% tax credit. For example, a remitted amount of £900 will be treated as £1,000 gross with tax suffered of £100. This notional tax is not repayable. Enter the remitted amount relating to pre-5 April 2016 income. Details of remitted dividend income will appear in boxes 7.4A to 7.4F, 7.3 and 7.4 on pages F 2 and F 3 of the Foreign income (SA106) pages.

Enter the details for each payment in the grid.

Option Description
Date Enter the date for each dividend payment. This must be within the currently selected tax year.
Holding Enter how many shares the client holds for each payment.
Gross Enter the amount of each dividend payment, after the deduction of any unremittable income.
Tax Enter the amount of any UK income tax deducted at source, including any Special Withholding Tax e.g. on unit trust dividends. Include further details in Additional information.
Foreign tax Enter the amount of Foreign tax that was charged on each dividend payment. If the rate of foreign tax that the client paid was more than the rate to which, as a UK resident, they were liable under the terms of a Double Taxation Agreement, enter the amount of foreign tax at the agreement rate. Leave this box empty if no Foreign tax was charged.
Net This is calculated as the Gross amount minus the Tax and Foreign tax.

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