Readers’ forum: Certificate of tax deduction

I am completing the personal tax return of an additional rate UK taxpayer and have been presented with a form R185 showing his share of income arising from a UK trust in which my client has an interest in possession.

The R185 includes entries to be made in the foreign pages of my client’s return. To keep the figures simple the R185 showed £10 000 of dividend income from US companies upon which foreign tax had been deducted at source at the treaty rate of 15%. In addition the R185 shows an amount for UK tax suffered of £750 – being 7.5% of the £10 000 foreign income taxed in the trust’s own tax return.

Taking these figures at face value and following the instructions on the form R185 I would include £10 000 gross income on the foreign pages with UK tax deducted...