PTP TR - Calculation of Foreign Tax Credit Relief (FTCR)
Article ID
kba-03651
Article Name
PTP TR - Calculation of Foreign Tax Credit Relief (FTCR)
Created Date
6th November 2018
Product
Problem
Calculation of Foreign Tax Credit Relief (FTCR)
Resolution
PTP calculates the Foreign Tax Credit Relief automatically depending on the income on the return. The software deals with the items of foreign income in order of the rates of foreign tax, highest first, as this usually gives the best answer. However there are instances where this does not give the most beneficial answer. If you do not agree with the amount, you can edit the amount in box 2 on page 1 of the Foreign pages using the override tick box.
There is no facility to view the FTCR calculation breakdown within PTP but more information may be found here https://www.gov.uk/government/publications/calculating-foreign-tax-credit-relief-on-income-hs263-self-assessment-helpsheet.
Please note: The software does not have a list of Double Taxation Agreements. If foreign tax has been entered and FTCR has been claimed, this may need to be restricted manually based on the DTA, if there is one in force for the particular Country or Territory. Please check.
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