Foreign (SA106)

Foreign (SA106) is an optional module to enable you to enter summary details to complete any section of the Foreign pages (SA106).

HMRC guide to complete Foreign pages.

Overview

Unremittable Income and Foreign Tax Credit Relief (FTCR)

Unremittable income

If any income is unremittable income, do not enter details of this in any other section of the return but provide details of the country, income and any foreign tax paid in Additional information.

Foreign tax credit relief (FTCR)

Relief for foreign tax paid can be claimed as a deduction from income reducing the amount taxable, or as Foreign Tax Credit Relief (FTCR).

Where Foreign tax credit relief is claimed, the amount available may be specifically restricted under a Double Taxation Agreement (DTA) or limited to the UK tax due on the foreign income.

The amount at Total FTCR entered is calculated as the sum of all amounts entered in the income sections with FTCR and where Claim Foreign Tax Credit Relief is ticked.

You can use HMRC helpsheet 263 to calculate any restriction to foreign tax credit relief. If the amount differs, you can tick Amend FTCR claim and enter the revised amount.

Interest, Dividends, Pensions and Benefits, and Diverted Income

You should aggregate amounts from multiple sources based on the claim to be made for any foreign tax paid as follows: -

  • Where Foreign Tax Credit Relief is to be claimed enter the totals in the (With FTCR) section.
  • Where no foreign tax has been paid or relief is to be claimed as deduction enter the totals in the (Without FTCR) section.

Enter a country code for each relevant section. If income is from more than one country, select one country and enter details of the other countries in Additional information.

The Taxable amount for amounts in (With FTCR) equals Income before tax. For amounts in (Without FCTR) the Taxable amount equals Income before tax minus Foreign tax.

Diverted Income – All Other Income Received By A Person Abroad – Residential Finance Costs
Unused residential finance costs brought forward Enter any unused residential property finance costs from this property business from earlier years.

Any balance of the residential finance costs which is still unrelieved, may be carried forward to future years of the same property business.
Current year residential property income or restricted finance costs Enter the amount of residential property income or restricted finance costs relating to property income entered above.
Residential finance costs carried forward Enter the amount of unrelieved residential finance costs to be carried forward.

Property

You can use this section for clients with multiple properties in the same country, or with the same basis of relief for any foreign tax paid.

Overseas Property

Enter the totals for the overseas property business.

Overseas Property Income – Residential Finance Costs

Unused residential finance costs brought forward Enter any unused residential property finance costs from this property business from earlier years.

Any balance of the residential finance costs which is still unrelieved, may be carried forward to future years of the same property business.
Residential finance costs relieved in the current year Enter the amount of eligible residential finance costs relieved in the current year. The basic rate reduction may be restricted in the tax calculation. If so, amend Residential finance costs relieved in the current year to show the restricted amount. For more information see Restricted residential finance costs.

Summary

Enter a country code. If there are properties from multiple countries, in the country list, select ‘None of the above’ and provide details in Additional information.

You can use the Claim Foreign Tax Credit relief tick box to indicate the basis of relief for any foreign tax paid.

Loss Allocation

Enter claims for losses brought forward or for the use of current year losses.

If the amount at Loss brought forward exceeds the Total taxable profit for the year, the excess will be show as the Loss to carry forward.

Other

Foreign Tax Credit Relief on Other Income

If the income is from more than one source, aggregate the details and select the basis of the claim for the foreign tax paid.

Capital Gains FTCR and SWT

If the gains are from more than one source, aggregate the details and select the basis of the claim for any foreign tax paid.

Other Overseas Income and Gains

If other amounts are from more than one source, aggregate the details.

You can only enter details for multiple foreign life insurance gains if the basis of taxation and the number of years are the same.

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