It would be helpful to have personal tax accurately restrict the amount of foreign tax credit relief. Currently it is only able to restrict the FTC to the equivalent amount of UK tax that would be due.
This is not always correct and causes tax calculations to be incorrect.
In the case of income such as dividends, the foreign tax credit is restricted in accordance with a double tax treaty in place.
For example, Swiss dividends - per the double tax treaty, the maximum foreign tax credit that can be allowed is 15%, but IRIS Personal Tax allows over 30%, leaving the tax calculation incorrect.
This should be a simple update, given that the country code is entered when adding a source.
Other platforms have had this for over 10 years.
The incorrect tax calculation has led to enquiries, with reviews ensuring the income has been added and trusting that the tax calculation is correct, due to time constraints.
It would be very helpful for the relevant double taxation agreement percentages to be used, with the restriction being the lower of the foreign tax paid, the equivalent UK tax and the double taxation agreement percentage.
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