Personal Tax- Tax Computation 'Non repayable tax credits on dividends'?
Article ID
ias-12882
Article Name
Personal Tax- Tax Computation 'Non repayable tax credits on dividends'?
Created Date
29th August 2018
Product
IRIS Personal Tax
Problem
Personal Tax- Why does the Tax Computation show a non repayable tax credits on dividends?
Resolution
Your client is receiving a Dividend tax credit which was never paid etc on the Tax Comp.
HMRC rule being applied: According to ITTOIA Act 2005 section 399 informs that a non UK resident is treated as having paid (non repayable) tax at the dividend ordinary rate on the amount or value of the dividend is retained. However without the grossing up of the dividend by reference to the dividend ordinary rate.
This will show on the Tax Comp as a ‘Non repayable tax credits on dividends‘ under Other relief
Note: This only applies to dividends received by NON UK residents and this tax credit calculation cannot be overridden/removed if you have this Dividend(s) entry in PT (even if no tax was even taken from this).
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