Foreign Dividend Tax Calculator UK 2026/27
UK residents pay UK dividend tax on foreign dividends at the same rates as UK dividends. But withholding tax adds complexity. This guide covers how foreign dividends are taxed, withholding tax credits, and how to declare them on Self Assessment.
Last updated for the 2026/27 tax year.
UK tax on foreign dividends, same rates as domestic
UK residents pay UK dividend tax on foreign dividends at the same rates as on UK company dividends. It doesn't matter whether you hold the shares directly, through a platform, or via a fund.
The 2026/27 rates are 8.75% basic, 33.75% higher and 39.35% additional. The £500 dividend allowance covers all your dividends — UK and foreign combined. HMRC does not distinguish between the two when applying rates.
Common withholding tax rates for UK investors
| Country | Withholding rate (treaty) | Without treaty |
|---|---|---|
| USA | 15% | 30% |
| Germany | 15% | 25% |
| France | 12.8% | 30% |
| Ireland | 0% | 25% |
| Netherlands | 15% | 15% |
Rates shown are treaty rates applicable to most individual UK investors. Actual rates depend on treaty provisions and broker documentation. File a W-8BEN form with your broker for US withholding reduction.
Worked example: US dividend with withholding tax
A UK basic-rate taxpayer gets a US dividend with a gross amount of £1,000. The broker withholds 15% = £150 and pays £850 net. Assume total dividends for the year exceed £500.
- UK dividend tax at basic rate (8.75%) on £1,000 gross = £87.50.
- Foreign tax credit for withholding: £150, but capped at UK tax due of £87.50.
- Additional UK dividend tax owed: £0 (withholding exceeds UK liability).
- Excess withholding (£150 − £87.50 = £62.50): cannot be reclaimed.
For a higher-rate taxpayer on the same £1,000 dividend:
- UK dividend tax at 33.75% = £337.50.
- Foreign tax credit: £150.
- Additional UK tax owed: £337.50 − £150 = £187.50.
How to declare on Self Assessment
Foreign dividends go on the SA106 Foreign income supplementary pages — not the UK dividends section. Enter the gross dividend before any withholding, the withholding tax deducted, and claim the foreign tax credit. Convert to sterling at the exchange rate on the date of receipt.
Your broker or platform should provide an annual tax certificate listing dividends by country with withholding amounts. Use that. The deadline for 2026/27 income is 31 January 2028.
Foreign dividends inside an ISA
UK dividend tax doesn't apply to dividends inside a Stocks and Shares ISA, regardless of whether the holding is UK or foreign. But the foreign country's withholding tax still applies at source — even inside an ISA. US holdings in ISAs typically suffer 15% US withholding (after submitting a W-8BEN form) with no way to reclaim it, because there's no UK tax liability to offset against. That makes US dividend stocks marginally less efficient inside an ISA than UK dividend stocks.