tailieunhanh - Calculating Foreign Tax Credit Relief on income

Just to round out the sketch of what’s happened, I add the following. Large financial firms in distress have received something like $50- billion in recapitalization funds from sovereign wealth funds. So far there have been very few bank failures, five according to the FDIC since February 2007, but apparently 75 more institutions are on the problem list. One of the reasons why the crisis hasn’t been more damaging is that most banks, especially large ones, went into the crisis with high bank capital. A third feature of the ongoing crisis follows from the preceding one. Faced with clear evidence that various parts of the financial markets. | HM Revenue Customs Helpsheet 263 Tax year 6 April 2011 to 5 April 2012 Calculating Foreign Tax Credit Relief on income o Contacts Please phone the number printed on page TR 1 of your tax return the SA Helpline on 0845 9000 444 the SA Orderline on 0845 9000 404 for helpsheets or go to What is Foreign Tax Credit Relief If you have paid foreign tax on an item of income that tax cannot be refunded by HMRC. If you are resident in the United Kingdom UK Isle of Man or the Channel Islands and that item of income is also chargeable to UK tax you can claim a credit Foreign Tax Credit Relief for all or part of the foreign tax to be set against the UK tax due. Please note that if you are dual resident and a Double Taxation Agreement DTA resolves that dual residence in favour of the other territory you cannot claim Foreign Tax Credit Relief in the UK as it will be for the other territory to provide relief. For some types of income no foreign tax will be allowed by treaty at all as the treaty will oblige the other country to exempt the income from tax altogether. If this is the case you should claim the exemption from tax in the other country and no FTCR will be due in the UK whether or not the claim for exemption is actually made. For example almost all foreign pensions other than government pensions are exempted from tax in the country where they are paid under the terms of a DTA between the UK and that country. It will be very unusual for any credit for foreign tax to be due in the UK in respect of foreign pensions and you should instead claim relief from tax in the country where the pension is paid. What follows only applies to circumstances where both countries are allowed to tax the income under any DTA and does not apply to any situation where one of the countries is obliged by a double taxation treaty to exempt the income from tax or where you do not meet the residency requirements set out above. The amount of Foreign Tax Credit Relief FTCR that can be .