Foreign dividends

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

STOP PRESS: The remittance basis is to be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in Finance Bill 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

Overseas dividends are those received from companies not resident in the UK. ‘Dividends’ includes certain other distributions, see the Cash dividends and Non-cash dividends guidance notes. For the rate of UK tax on taxable dividends, see the Taxation of dividend income guidance note.

For tax purposes, the UK territories of the Isle of Man, Jersey and Guernsey are classed as overseas.

Is it a dividend?

Before determining whether the individual is taxable on the foreign dividend, it is necessary to check that the distribution is, in fact, treated as a dividend for UK tax purposes and is not a capital payment.

In considering whether it is a capital payment,

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