[ˈfɒrɪn tæks ˈkrɛdɪt rɪˈliːf]
Foreign Tax Credit Relief gives taxpayers a way to claim relief on tax on foreign income that has already been taxed in the foreign country.
Foreign Tax Credit Relief allows taxpayers to reduce their tax liability on foreign income by claiming tax-relief on the foreign taxes that you have already paid for that income. It exists to allow taxpayers to avoid being taxed twice on the same income.
The existence and terms of a Double Taxation Agreement between the UK and the home of the foreign income will determine how much relief you will receive. It is still possible to receive some relief even without the existence of a Double Taxation Agreement, unless the foreign tax does not correspond to UK Income Tax or Capital Gains tax. If that is the case, tax will have to be paid in full twice.
The rules are different for individuals who are Non-domiciled.
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