UK Foreign Tax Credit Relief (FTCR) Calculator 2026/27
UK FTCR calculator 2026/27 - foreign rental, dividend, employment, royalty income with FTCR offset. US 30% WHT, France 12.8%, Spain 24% IRNR examples.
FTCR scenarios
| Income type | Income (£) | Foreign tax | UK tax pre-FTCR | FTCR | UK net | Total worldwide | Note |
|---|---|---|---|---|---|---|---|
| Spanish villa rental | £20,000 | £4,800 | £8,000 | £4,800 | £3,200 | £8,000 | Spanish 24% IRNR + UK higher-rate. FTCR full |
| US dividend | £5,000 | £750 | £1,788 | £750 | £1,038 | £1,788 | US 15% WHT with W-8BEN + UK higher dividend rate |
| US employment (UK transferee) | £50,000 | £12,500 | £20,000 | £12,500 | £7,500 | £20,000 | 25% US federal + UK higher-rate. FTCR limits to UK liability |
| Australian dividend | £8,000 | £0 | £2,860 | £0 | £2,860 | £2,860 | Australia 0% to UK resident treaty + UK higher dividend |
| UAE rental (no tax country) | £30,000 | £0 | £12,000 | £0 | £12,000 | £12,000 | UAE 0% + full UK tax. No FTCR |
Frequently asked questions
What is FTCR?
Foreign Tax Credit Relief allows UK resident to offset foreign tax against UK tax on same income. Prevents double taxation.
How much Foreign Tax Credit Relief can I claim?
FTCR capped at UK tax due on same source. If foreign tax higher, excess lost (cannot offset other UK income).
How do I claim Foreign Tax Credit Relief?
Self Assessment SA106 (foreign income). Show foreign income + foreign tax + treaty position. SA computation applies FTCR automatically.
What treaty rates apply to foreign withholding tax?
UK Double Taxation Agreements with 130+ countries. Reduces source-country WHT. Examples: US 15% dividend (vs 30% standard), Australia 0%, France 12.8%.
What evidence does HMRC need for an FTCR claim?
Foreign tax payment confirmation (statement / receipt), W-8BEN copies, treaty rate confirmation, GBP conversion at HMRC rates.