HMRC One to Many letters for foreign tax credit relief claims

HMRC’s Wealthy and Charities Large Partnerships and International teams are sending reminder letters to those who claimed foreign tax credit relief against employment income in 2022/23. The intention is to ensure that, should those individuals make a similar claim in 2023/24, they are reminded of the criteria for the relief – in particular the rules surrounding employment and relief for US taxes paid. Recipients of the letter are advised to check their 2022/23 entries in light of this reminder and make any changes accordingly; should HMRC open an enquiry and find any errors, penalties may well be imposed as well as tax and interest.

Claiming Foreign Tax Credit Relief in your tax return letter