Double Taxation Relief Calculator

Double taxation relief (DTR) prevents you from paying tax twice on the same income. If you pay tax in a foreign country, HMRC allows a credit against your UK tax on the same income.

DTR = the lower of (foreign tax paid) or (UK tax on the foreign income). If the foreign rate is higher than the UK rate, only the UK tax is offset — the excess is not refunded.

The UK has Double Taxation Agreements with 130+ countries. For countries without a DTA, unilateral relief applies under UK domestic law. You can claim DTR in most cases regardless.

DTR applies to: employment income from overseas, self-employment income, rental income, dividends, interest, and pensions from foreign sources.

On Self Assessment tax return — on the Foreign supplementary pages (SA106). Enter foreign income and the foreign tax suffered. HMRC calculates the relief automatically.

If the foreign tax rate exceeds the UK rate, you can offset only up to the UK tax due. The excess foreign tax is not refunded. However, in some DTA countries, excess credits may be carried forward.

Yes. Withholding tax deducted from foreign dividends is eligible for DTR credit against UK income tax on those dividends.

Most UK DTAs use the credit method (offset foreign tax against UK tax). A few use the exemption method (foreign income is excluded from UK tax entirely). Check the specific DTA.

Non-domiciled UK residents using the remittance basis may have different DTR rules. If unremitted foreign income is not taxed in the UK, DTR on that income generally doesn't apply.

Keep: foreign tax certificates, payslips showing withholding, foreign tax returns, and evidence of the amount of foreign income and tax paid. HMRC may request these on enquiry.

DTR can apply to overseas inheritance tax under some DTAs. The UK has limited estate tax DTAs (USA, France, India, Ireland, Pakistan, South Africa, Sweden). Unilateral relief is also available.

Treaty shopping involves using DTAs to reduce withholding taxes inappropriately. HMRC and foreign authorities actively prevent misuse of DTAs through anti-avoidance provisions.