Us dividends/uk tax

How do people reconcile the different tax years and the need to pay taxes both places yet then get the credit for UK taxes on the us returns?

For example in the year to dec 31, 2017 say I got US-based taxable dividends of $20,000 and the us of course will tax them on the return due April 15 (with extensions possible)

In the year April 2017 - April 2018 the total is, say, $22,000. Some of those are the same dividends mentioned above, some are “new” that the us will tax next year .. the UK, of course, will want its money on all of it, and since I’m here has first dibs on me.  But its return isn’t due until January 2019.

How do I actually do this? Do I simultaneously pre-pay UK and delay filing Us so I can claim foreign tax credit? Do I have to match taxes paid to the exact dividends received?

I’d be grateful for insight from those who have done this before.


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Someone in the UK does not have return due on 17 April; only a possible payment to the IRS. The US charges tax at the 15% treaty rate.  It might be sensible to pay this by 17 April. The UK gives credit (after the £5,000 zero rate) for US tax at 15% on the doubly taxed dividends. Not clear what the question is?

Sorry I wasn’t clear - either in my head or in the question. I didn’t realize the UK gave the credit - I thought the UK had first taxing rights on them and I could only take a Us credit later. Now that I read your answer it seems clear - pay the US first and take the credit on the UK return. Thank you.


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Consider filing US returns with an extension. 

Foreign credits can carry forward too. Eventually, you should be getting credit where its due.