I wasn't sure whether HMRC would want a tax return this year, as my situation is reasonably straightforward, with dividends and non-ISA interest well within the limits. But they wanted one, so I filled it in. Much to my surprise, they grumbled immediately about the overseas dividends. What I stated did not include the scrip dividend £0.99 residue but a change from £71 to £72 (1) seemed to keep them happy. So they knew everything about the Santander dividends. Blimey.
Next the expected final calculation was not almost zero as expected, but a refund of £16.80 . I can only think that this comes from the tax that I paid on the Santander dividends somehow being returned.
Surely this can't be right - returning tax paid to the Spanish government ??
- K
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Tax on Santander shares
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Re: Tax on Santander shares
k333 wrote:Surely this can't be right - returning tax paid to the Spanish government ??
Tax retained by foreign governments can often be offset against tax owed to the UK. You would have to examine your tax calculation with a fine toothcomb to figure out how it arose. The UK has numerous double taxation agreements.
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Re: Tax on Santander shares
Tax retained by foreign governments can often be offset against tax owed to the UK. You would have to examine your tax calculation with a fine toothcomb to figure out how it arose. The UK has numerous double taxation agreements.
Thanks Alaric,
I've taken a good look over the tax return, and there is no mention of the Santander tax paid. It simply adds the UK and overseas dividends together and says the tax rate is 0%.
So the refund must come from elsewhere, and I think I know why. I collected the state pension last year but my tax code did not take this into account, and I paid too little tax for the first five months, and then Hmrc modified my code to claw it back in the next seven. But they would not have had enough information to make the calculation exact, and hence the slight discrepancy.
- K
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