How to Fill Out an SA106 Form (Foreign Income)
If you’ve earned income from outside the UK, you’ll likely need to complete the SA106 alongside your main Self Assessment return. House Of Accounts explains what it covers and how to fill it out correctly.
What Is the SA106 Form?
The SA106 is a supplementary page attached to your main Self Assessment tax return (SA100), specifically for declaring foreign income and capital gains. If you’re a UK tax resident with income from overseas — property, dividends, interest, pensions, or employment — you’ll generally need to complete this form.
Who Needs to File an SA106?
- UK residents with rental income from an overseas property.
- Anyone receiving dividends or interest from foreign investments or bank accounts.
- Individuals with foreign pension income.
- UK residents who’ve paid foreign tax on income and want to claim Foreign Tax Credit Relief.
Key Sections of the SA106
- Foreign savings and investment income — dividends, interest, and similar income.
- Overseas property income — rental income and allowable expenses from foreign property.
- Foreign tax credit relief — claiming relief for tax already paid to another country on the same income.
- Other overseas income, including foreign pensions and certain employment income.
How to Complete the SA106 Step by Step
- Gather documentation for all foreign income received during the tax year, converted to GBP using the correct exchange rate.
- Identify which sections apply — most people only need one or two of the available categories.
- Record any foreign tax already paid on that income, to support a Foreign Tax Credit Relief claim.
- Complete the corresponding boxes accurately, cross-referencing figures with your main SA100 return.
- Submit alongside your main Self Assessment return by the standard 31 January deadline.
Foreign Tax Credit Relief Explained
If you’ve already paid tax on foreign income in the country it came from, Foreign Tax Credit Relief prevents you from being taxed twice on the same income. The relief is generally limited to the lower of the UK tax due or the foreign tax already paid, and the calculation can get complex depending on double taxation agreements between the UK and the relevant country.
Common SA106 Mistakes
- Using the wrong exchange rate, or an inconsistent rate across different income sources.
- Forgetting to claim Foreign Tax Credit Relief for tax already paid abroad.
- Missing the non-domiciled remittance basis considerations, if relevant to your situation.
Non-Domiciled Individuals and the Remittance Basis
Individuals who are UK tax resident but not UK domiciled have historically been able to elect for the remittance basis, only paying UK tax on foreign income actually brought into the UK, rather than on worldwide income as it arises. This area of tax law has seen significant reform in recent years, and the rules interact closely with what needs declaring on the SA106, so anyone in this position should get specific, up-to-date professional advice rather than relying on general guidance.
- The remittance basis affects whether foreign income is taxed as it arises or only when brought to the UK.
- Rules in this area have changed significantly in recent years and continue to evolve.
- Non-domiciled status is a complex, individual determination that benefits from dedicated professional advice.
Beyond the remittance basis question, the SA106 also requires care around currency conversion consistency — using a mix of spot rates and average rates across different income sources on the same form is a common error that can trigger HMRC queries. Keeping a simple log of the exchange rate used for each income source, and applying it consistently, makes the form far easier to complete accurately and to defend if HMRC ever asks for supporting workings.
Get Help With Foreign Income Reporting
Foreign income reporting is genuinely complex. Our Self Assessment services handle SA106 filings accurately, ensuring you claim every relief you’re entitled to.
Frequently Asked Questions
The SA106 is used to declare foreign income and capital gains as part of your UK Self Assessment tax return, covering things like overseas rental income, dividends, and interest.
Generally yes, if you're UK tax resident and have received any taxable foreign income, though specific thresholds and reliefs may reduce what's actually owed.
It's relief that prevents you being taxed twice on the same income — once abroad and once in the UK — generally limited to the lower of the UK or foreign tax due.
HMRC generally expects a consistent, reasonable exchange rate — either the rate on the date of receipt or an official average rate for the period, applied consistently.
Yes, provided you've genuinely paid tax on that foreign rental income abroad, you can generally claim Foreign Tax Credit Relief through the SA106.
It's submitted alongside your main Self Assessment return, by the standard 31 January online filing deadline.
Yes. We handle foreign income reporting and Foreign Tax Credit Relief claims as part of our Self Assessment services.
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