SA106 Foreign Income Pages: Reporting US Dividends, Interest and Rental Income

SA106 foreign income reporting means entering every foreign interest payment, dividend, pension and overseas rental profit on the "Foreign" pages of your UK tax return, gross and in pounds, whether or not the money came to the UK. The same pages are where you claim credit for foreign tax paid. For 2025/26, HMRC's notes run to 24 pages, but most people with US income need only three sections.

This guide follows the 2025/26 SA106 form in order. It shows which boxes a UK resident with US income normally fills in, which sections can be skipped, and how the overseas property pages work for a US rental, which is where most errors happen. If you are a US citizen, read it alongside our guide to Self Assessment for US citizens in the UK, which explains the treaty rule that caps the UK credit for US tax on dividends and interest.

What is SA106 foreign income, and who needs the Foreign pages?

SA106 foreign income is income from outside the UK that a UK resident must report on the "Foreign" supplementary pages of the SA100 tax return. HMRC's SA106 form and notes for 2025/26 cover overseas savings interest, dividends from foreign companies, overseas pensions and social security, income from land and property abroad, income from certain offshore trusts and funds, and claims for foreign tax paid on income reported elsewhere.

You need the Foreign pages if you are UK resident, you are in Self Assessment and you have any of that income. The notes say to put "the full amount in the relevant boxes (even if you did not bring the income into the UK)". The only route to leaving eligible foreign income out of UK tax is the four-year foreign income and gains regime, and even then the income is still reported on the SA106 and relief is claimed in separate boxes.

Two groups should not use the SA106. The notes say that people who are resident abroad and complete the SA109 Residence pages should not complete the Foreign pages. And some foreign income belongs on other pages entirely, covered in the next section.

What does not go on the SA106?

Three types of foreign income are reported on other supplementary pages, with the SA106 used only to claim the foreign tax:

• Foreign employment income goes on the Employment pages. The SA106 section "Foreign tax paid on employment, self-employment and other income", near the end of the form, is where you claim the foreign tax on it.
• Foreign trading or partnership income goes on the Self-employment or Partnership pages.
• Capital gains on overseas assets, such as selling US shares, go on the Capital Gains Tax summary pages (SA108). The SA106 notes say to use boxes 33 and 37 to 40 only to claim relief for foreign tax on a gain, and that "the gains must also be included" on the SA108.

Overseas Workday Relief elections are not made on the SA106 either; the notes direct them to the SA109.

For a map of every supplementary page and who needs it, see our SA100 tax return guide.

The SA106 section by section

The table maps each section of the 2025/26 form to the boxes you fill in and what they usually mean for someone with US income.

SA106 section	Boxes	Typical US income
Foreign Tax Credit Relief (only if you calculate it yourself)	1 to 2	Usually left blank; HMRC calculates the relief
Interest and other income from overseas savings	3, 4, 4.1	US bank and brokerage interest, US Treasury interest
Dividends from foreign companies	5, 6, 6.1	Dividends from US shares and US-domiciled funds
Remitted foreign income (former remittance basis users)	7.1 to 7.5	Pre-6 April 2025 income brought to the UK in 2025/26
Overseas pensions, social security benefits and royalties	8, 9, 9.1	US Social Security, 401(k) and IRA distributions, US employer pensions
Income from land and property abroad	14 to 32	Rent from a US house or condo
Capital gains: Foreign Tax Credit Relief	33, 37 to 40	US tax paid on a gain reported on the SA108
Foreign tax paid on employment and other income	Columns A to F	US state or federal tax on US workdays reported on the Employment pages

Sections on transfers of assets abroad, offshore funds, life policies and non-resident trusts exist further in, but most people with ordinary US accounts never touch them. If you hold US mutual funds or ETFs, check whether they are offshore funds for UK purposes before filing, because gains on disposals of holdings in offshore funds have their own box, box 56.

How do you report US interest and dividends on the SA106?

US interest and dividends are reported on the savings and dividends sections of the SA106, one row per country, using country code USA. Each row has six columns: A for the country code, B for the gross income in pounds, C for foreign tax, D for UK tax or Special Withholding Tax, E for an X if you claim Foreign Tax Credit Relief, and F for the taxable amount. You then total column D and column F into the section boxes, for example boxes 5 and 6 for dividends.

Three rules from the notes matter most:

• Column C is capped by the treaty. Foreign tax is "the lower of the foreign tax actually withheld and the amount of tax credit allowed under the terms of a DTA". Under the US/UK treaty, Article 10 limits US tax on portfolio dividends to 15%, and Article 11 makes interest taxable only in the country of residence. So a UK resident normally has 15% at most in column C for US dividends, and nothing for US bank interest.
• No credit inside the Dividend Allowance. For 2025/26 the Dividend Allowance is £500. The notes say that if no UK tax is due because dividends fall within it, you cannot claim Foreign Tax Credit Relief on them. You still report every dividend, because the total affects the rate on the rest.
• Column F follows column E. If you put an X in column E, column F repeats the gross figure from column B. If you do not claim the credit, column F is column B minus column C.

For 2025/26, dividends above the allowance are taxed at 8.75%, 33.75% and 39.35% in the basic, higher and additional rate bands, per the SA106 notes and GOV.UK's tax on dividends page. US citizens face a further restriction on the credit for US tax, explained in our US citizens' Self Assessment guide.

How do you report US rental income on the SA106?

US rental income is reported in the "Income from land and property abroad" section, boxes 14 to 32, which runs across pages F 4 and F 5 of the form. The notes state that you are taxable on overseas rental income "even if you do not bring that income to the UK", unless you claim relief under the FIG regime. One set of boxes can cover several let properties in the same country; if you have properties in different countries and have paid foreign tax, you complete a separate set for each.

Step one: check the property income allowance

For 2025/26, property income up to £1,000 is exempt and does not need to be reported, and the SA106 notes make clear that the £1,000 covers UK and overseas property income together. If your total property income is over £1,000, you choose between deducting the allowance in box 14.1 or deducting actual expenses. You cannot do both. For almost any US rental with a mortgage, property tax and insurance, actual expenses are worth more.

Step two: work through the income and expense boxes

1. Box 14: total rents and other receipts, in pounds. Lease premiums go separately in box 16.
2. Box 14.2: put an X only if you used traditional accounting. Otherwise the cash basis applies, which the notes say is available where total foreign property income is up to £150,000.
3. Box 17: allowable expenses such as property taxes, insurance, repairs, management and legal fees. Mortgage interest on a residential let does not go here.
4. Box 19: the private-use share of any expense, for example if the property was let for only part of the year.
5. Boxes 21 to 23: capital allowances, the Structures and Buildings Allowance, and relief for replacing domestic items such as furniture and appliances in a let home.
6. Box 24: the adjusted profit or loss.
7. Box 24.1: residential finance costs, meaning mortgage interest and loan costs. These are not deducted from profit. They give a reduction in Income Tax which GOV.UK's landlord finance cost guidance describes as "the basic rate value (currently 20%)". Unused amounts carry forward through box 24.2.

Step three: the summary rows and losses

The profit from box 24 is copied to box 25 and into the summary columns with country code USA. US tax paid on the rent goes in column C and, if you claim the credit, an X in column E. Box 28 totals the foreign tax and box 30 the taxable amount. Brought-forward overseas property losses go in box 26, and losses to carry forward in box 32.

A US rental is one of the few types of US income where the US keeps a genuine taxing right over a UK resident. Article 6 of the treaty says income from real property "may be taxed" in the country where the property is situated. That makes US tax on US rent creditable in the UK, up to the UK tax on the same profit. Our guide to US/UK double taxation relief shows how the credit is limited.

Why the UK profit on a US rental is usually higher

The same house produces two different profit figures, and the gap surprises most landlords. The US return deducts depreciation on the building. The UK does not: the SA106 notes say the cost of "buying or selling, improving or altering, land or property" is capital, and capital allowances are not available for plant and machinery in a dwelling. On the UK side, the nearest equivalent is relief for replacing domestic items.

Mortgage interest is also treated differently. The US deducts it against rent; the UK gives the 20% tax reduction in box 24.1 instead. A higher-rate taxpayer in the UK therefore gets less relief for the same interest. The two tax years differ too: the UK year runs from 6 April to 5 April, so each SA106 draws on parts of two US calendar-year returns.

Because the UK profit is higher, the UK tax on it is often higher than the US tax. The foreign tax credit then covers only part of the UK bill. Landlords with US property can see how we handle both sets of accounts on our landlords page.

Illustrative example: a UK resident lets a house in Ohio for the whole of 2025/26. The rent converts to £18,000 at the rates when it was received. Property tax, insurance and management fees come to £4,000, and mortgage interest to £5,000. On the SA106, box 14 shows £18,000, box 17 shows £4,000 and box 24 shows a profit of £14,000. The £5,000 of interest goes in box 24.1, giving a basic rate reduction of up to £1,000, subject to the limits in the notes. US depreciation claimed on the US return is ignored. Any US federal tax paid on the rent goes in column C with an X in column E, and the credit is limited to the UK tax on the £14,000. This is a simplified illustration, not advice.

Pensions, Social Security and the FIG boxes

US pensions, 401(k) and IRA distributions and US Social Security go in the "Overseas pensions, social security benefits and royalties" section, with totals in boxes 8 and 9. The notes warn that under most tax treaties, pensions paid for past employment are taxable only in the country of residence, so check the treaty before claiming a credit. If a pension is not taxable in the UK because of a treaty, the notes ask you to give full details of the payer, the pension and the treaty in the "Any other information" box.

Each income section also has a ".1" box, such as 4.1, 6.1, 9.1 and 30.1. These are for qualifying new residents who have made a claim under the four-year FIG regime on the SA109 pages. The notes are firm that you cannot claim both FIG relief and Foreign Tax Credit Relief on the same income, and that a FIG claim on overseas property removes the finance cost reduction and the right to carry losses and unused finance costs forward. GOV.UK's guidance on the 4-year FIG regime sets out who qualifies.

Exchange rates, records and deadlines

The SA106 notes say to convert income into pounds "using the exchange rate at the time the income arose", and to use HMRC's published yearly exchange rates if you are unsure. Use the same method for income and for the foreign tax on it, and keep the workings.

The SA106 is filed with the SA100. For 2025/26, GOV.UK's Self Assessment deadlines page gives 31 October 2026 for paper returns and 31 January 2027 for online returns and payment. You do not have to calculate Foreign Tax Credit Relief yourself: the notes say HMRC will work it out if you complete the other boxes and file on time. Box 2 is only for people who calculate it using helpsheet HS263. If you are not yet in Self Assessment, see how to register by 5 October.

What people get wrong on the SA106

• Reporting net instead of gross. Column B is always the income before any foreign tax.
• Claiming the full US withholding. Column C is the lower of the tax withheld and the treaty rate, so if more than 15% was withheld from a US dividend, only 15% counts for the UK credit.
• Leaving out income that stayed in the US. Worldwide income is taxable whether or not it is remitted.
• Copying the US rental profit. US depreciation and mortgage interest deductions have to be reversed and rebuilt under UK rules.
• Putting US share gains on the SA106. The gain goes on the SA108; the SA106 only carries the foreign tax credit claim.
• Mixing FIG and credit claims. The same income cannot have both.

Getting SA106 foreign income right

The SA106 rewards a methodical approach: identify each type of foreign income, put it in the right section, convert it at a defensible rate, and cap the foreign tax at what the treaty allows. For anyone with US income, the Foreign pages and the Form 1040 should be prepared together, because each return decides how much credit the other can take. US/UK Cross Border Tax, US CPAs and UK tax advisers working as one team in London, Manchester, New York and San Francisco, prepares both. Our SA100 tax return guide and filing service covers the Foreign pages in full, and our cross-border property team handles US rentals on both sides. Contact us before the 31 January deadline.