HM Revenue & Customs (HMRC) has called on tax agents and professionals with experience in foreign tax credit relief (FTCR) to help shape future guidance and support.
This initiative follows continued concerns over the complexity of FTCR claims, particularly where individuals declare foreign income on self assessment tax returns after overseas tax has been paid.
HMRC is seeking direct feedback to identify persistent issues faced by claimants and to clarify the guidance it provides. Responses are being gathered through a ten minute survey, which closes on 21 April 2026.
Understanding Foreign Tax Credit Relief
Foreign tax credit relief is available to UK taxpayers who have paid tax on the same income in another jurisdiction. The relief is designed to avoid double taxation by allowing a credit for tax already paid abroad, set against corresponding UK tax liabilities.
FTCR is most commonly claimed by individuals who earn overseas income or have foreign investments that generate taxable returns. The FTCR rules are detailed within the UK tax code but require careful compliance.
Taxpayers must provide evidence of the foreign income and tax deducted, and claims are typically submitted via the self assessment tax return process.
HMRC has previously noted common errors and misunderstandings around the eligibility and calculation of this relief.
Challenges in Claiming FTCR
Many tax professionals have reported difficulties interpreting FTCR provisions, particularly concerning the apportionment of relief between different types of foreign income. Issues arise with respect to identifying the correct documentation, understanding double taxation agreements, and meeting the evidential requirements set by HMRC.
The process can also be affected by varying guidance on source documentation or acceptable proof of overseas tax paid. Such challenges can lead to delays, errors in returns, or subsequent HMRC enquiries.
The complexity of global tax rules and the interaction with UK law adds further uncertainty for both agents and individual taxpayers.
HMRC’s Feedback Initiative
In response to these ongoing concerns, HMRC has issued an open survey targeting tax agents and professionals. The authority aims to use the collective experience and feedback of practitioners to review, refine, and improve its published guidance on FTCR claims.
HMRC emphasises that the survey is anonymous and designed to take no more than ten minutes to complete. The intention is to identify the areas where guidance is unclear, and to gather intelligence on the practical difficulties reported by those who regularly assist clients with FTCR.
Survey Focus and Deadlines
The survey gathers feedback on several key topics: the typical challenges encountered when making and advising on FTCR claims;
the sources of information currently used by professionals; the perceived usefulness and clarity of HMRC’s existing guidance; and suggestions for improvements or alternative forms of support.
The deadline for responses is set for 21 April 2026. HMRC has also provided a contact email for further questions about the survey or how the insights collected will be used in policymaking and operational support.
Broader Tax Context and Recent Changes
This consultation comes at a time of wider changes in the UK tax landscape.
From April 2026, individuals with combined gross income from sole trades or property exceeding £50,000 will be required to maintain digital accounting records and submit quarterly updates as part of the Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) roll–out.
These new digital obligations are expected to increase the administrative burden for both taxpayers and agents.
Navigating FTCR rules alongside wider statutory updates may present further challenges, making timely, clear guidance from HMRC increasingly important for those handling international tax issues.
Final Summary
The current review into foreign tax credit relief guidance reflects HMRC’s ongoing commitment to informed, user–centred administrative improvements.
By involving agents and professionals, HMRC aims to ensure that relief processes are accessible and practical, minimising errors and supporting compliance. Professionals are encouraged to submit feedback before the survey deadline on 21 April 2026, helping to shape clearer support for FTCR applications.
As tax rules and reporting requirements continue to evolve including with the advent of Making Tax Digital ongoing dialogue between tax authorities and the profession will be vital. The Pie tax app enables users to keep track of such compliance updates and provides practical resources for UK taxpayers and their advisers.
