1265 - Do you wish to claim foreign tax credit relief

If you do not claim relief from UK tax for foreign tax that you have paid on this income, the amount on which you are liable to UK tax is reduced to the amount you received.

Foreign Tax Credit Relief is not always available, or may not be available on the full amount of foreign tax you have paid. Relief is subject to the following rules:

• you must be a UK resident
• the income must arise in the foreign country and be properly chargeable under the foreign country's law
• the amount of Foreign Tax Credit Relief must not exceed the UK tax on the same item of income or gains
• where a Double Taxation Agreement exists between the UK and the other country, the amount of foreign tax available for the relief is restricted to the minimum foreign tax payable under the terms of the Agreement.

To check if the UK has entered into a Double Taxation Agreement with the foreign territory you should go to Double Taxation Treaties which provides further information.

If a double taxation agreement does exist you must check what it says and how it applies to you. If foreign tax credit relief cannot be claimed for some or all of the foreign tax you will have to consider making a claim to the tax authority of the other country. You can find information about this claims process by accessing the Double Taxation Relief Manual

If no Double Taxation Agreement exists, or the Agreement does not cover that particular foreign tax, relief is only available if the tax corresponds to UK Income or Capital Gains Tax.

See Help Sheet 263 - Foreign Tax Credit Relief (PDF 110K) for further information about foreign tax credit relief.

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