PTP TR - Foreign dividends being grossed up on the tax calculation

Article ID

kba-02423

Article Name

PTP TR - Foreign dividends being grossed up on the tax calculation

Created Date

26th October 2010

Product

Problem

On running a tax calculation on older returns for a client with foreign dividends it seems to be grossing up the gross income entered on the return.

Resolution

There was a change in legislation in relation to foreign dividends which took effect in April 2008 regarding a UK tax credit on foreign dividends. This manifested in the tax calculation as the foreign dividends being grossed up in the income section and a tax credit visible further down.  This applied to returns 2009 – 2016 but was removed from 2017 onwards.