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.
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