Facta & FBAR:how to report UK held dividends and tax credit if you weren't taxed

Hi

I'm trying to help my friend with her streamline process reporting and we don't know how to report the share dividends that she has received in previous years.

The streamline form asks for Gross value and withheld value of the dividend. On my friend's share account statement let's say she had a dividend of £50 Gross and a £5 "Tax Credit" and in her actual account she received £45.

Does she report £50 as the gross value and £5 (tax credit) as withheld as tax? We don't understand what the tax credit represents as she was not required to pay tax in the UK as a lower rate tax payer who had less than £5000 in dividend income. All she actually got in her account was £45

For the purpose of the IRS reporting should we just write the dividend value as £50 and leave the withheld part blank? Or do we write the £5 tax credit as the withheld portion event though she didn't herself pay any tax.

It's very confusing. We'd be grateful for any help.

The dividend is the amount she received. The UK no longer offers notional tax credits; but even when this was UK law they were still not a creditable foreign tax.

Thank you guya for replying. So does that mean for the gross amount she reports to the IRS, we would just write the £45 (rather than the £50)?

(sorry neither of us have any financial knowledge so we don't know what the heck we are doing wit these forms  )

No - the amount reportable is never £45. It is the US dollar equivalent of the £45. You'll also have to decide if it is a qualifying dividend and how to basket the income (most probably passive) as well as report the account the shares are held in on the FBAR & 8938.