# Australian Dividend Franking credits and UK Tax



## matlong30 (Feb 28, 2011)

Hi All,

I hope you might be able to shed some light on this, I've been looking everywhere on this Forum and can't find the answer, and lots of UK Tax laws have changed in the last couple of years.

How are Australian tax paid dividends from listed companies, with Australian franking credits, treated in the UK Tax system?

Example:

£2,500 in Net Australian tax-paid dividends
£1,000 in Australian Franking credits (30% Tax credits)

Do I just declare the 2,500 in tax-paid dividends, and/or declare a 10% dividend credit on the 2,500 (as you do with UK tax-paid dividends), or the full 30% tax credit?

How on earth does the UK/Australia double taxation treaty apply to stuff like this?

Any assistance on any of this very gratefully received! :confused2:

Thanks


----------



## 90199 (Mar 21, 2010)

If you want the correct answer, ring your local Inland Revenue Office, they are human and very helpful,

Hepa


----------



## Andrew James (Nov 6, 2010)

matlong30 said:


> Hi All,
> 
> I hope you might be able to shed some light on this, I've been looking everywhere on this Forum and can't find the answer, and lots of UK Tax laws have changed in the last couple of years.
> 
> ...


Hi,

Depending on your UK tax residence status, you may have to subject the net 2.5k to tax in the UK with no foreign tax credit.

Just make sure you are not able to use something like being resident & not not ordinarily resident. I'm sorry I cannot be of any more assistance but it has been 5 years since I have done UK taxes!

Best,

Andrew


----------

