Quick Tax question

[traxx]

Thought it was about time I started thinking about doing my tax return

Quick question
If I have an overseas brokerage account (in this case France) where dividedends on a French company are paid (net of withholding tax)and I do not bring this money back to the UK or access it
Do I put this in as "Foreign dividends" or is it treated in a different way?

[Eric Mc]

If you are a UK tax resident amd UK domiciled, you must include it as Foreign Income in the tax return. It does not matter that you did nor remit it into the UK.
You will be given a credit for the French tax you have already suffered on the dividend. You need to enter it on the return at its Sterling value, of course.

[traxx]

Thanks

[traxx]

Thanks


Then for the follow up question what fx rate do I use since the money is still in €?

[Eric Mc]

It doesn't really matter.

I'd use the rate that was in place the date the interest was credited to the account - or if there are a number of amounts credited at different times, you can use an average rate for the tax year. Check HMRC website and they can give you the rates at 5 April 2008 and 5 April 2009. From that you can work out the average rate for the year.