Foreign tax credit relief
Foreign tax credit relief is something you can claim if you have already paid foreign tax on income normally taxed in the UK.
This usually happens if:
- you’re a UK tax resident (HMRC taxes your foreign income as well)
- or a non-resident but living in the UK and already transferred (“remitted“) that income to the UK
In either case, claiming this relief usually lowers your UK tax bill by amount of foreign tax that you’ve paid – or sometimes less.
How much relief you get depends on the Double-Taxation Agreement (DTA) between the UK and the country where you earned and paid tax on that income.
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