Can someone please explain the considerations of choosing Paid vs Accrued basis of Foreign tax credit for taxes paid in the UK?
What basis do people normally use when claiming FTC against UK paid taxes?
I understand that when the tax year is the same as in the US (=calendar year) it's generally easier to choose the accrual basis as you can claim taxes that you haven't paid yet, for example taxes you owe and will need to pay next year, after you file the foreign country tax report.
But I am not sure how the UK having a different tax year affects the calculation of accrual.
Many thanks.
