SA106 Form: How to Report Foreign Income on Your UK Tax Return

If your income crosses borders, the SA106 form is where HMRC expects you to explain yourself—politely, of course. It’s the supplementary page for your Self Assessment that covers anything earned overseas, from rental income on a French holiday home to dividends from a U.S. investment account.

You’ll need the SA106 if you receive foreign income—whether that’s from overseas employment, property, pensions, or savings—or if you’re claiming foreign tax relief under a double taxation agreement (DTA). It’s also relevant for non-residents with UK tax obligations or anyone whose finances don’t stop neatly at Dover.

It might sound complicated, but the SA106’s real purpose is simple: making sure you’re taxed fairly on what you earn abroad—once, not twice.

When and why do you need to use the SA106?

If you’ve earned money beyond the UK’s borders, the SA106 is how you bring that income back into the conversation with HMRC. It’s required for anyone who received overseas income during the tax year—no matter how small or how briefly it landed in your account.

You’ll need to complete the SA106 if you’ve had:

• Wages or self-employment income earned overseas.
• Foreign property income, including furnished holiday lettings in the EEA (European Economic Area).
• Dividends from foreign companies or overseas investments.
• Interest or savings income from non-UK accounts.
• Life insurance policies or social security benefits paid abroad.

It also covers remittance basis claims for UK taxpayers who are non-domiciled, along with any unremittable income—money earned overseas that you can’t bring into the UK due to local restrictions.

Even if you already claim the property income allowance on your UK property, any overseas earnings must still go through the SA106. HMRC uses this form to determine how much income tax you owe in the UK and to apply any foreign tax relief or double taxation agreements that may reduce your tax liability.

📌 Pro Tip: If you’re a UK tax resident with even modest foreign dividends or savings, file the SA106 anyway—it’s far easier to declare and offset now than to explain later why you didn’t.

How to complete the SA106 form

Filling in the SA106 isn’t as daunting as it looks once you know what HMRC wants from you (and where to find it). Here’s how to get it done without losing your cool—or your exchange rate calculator.

Step 1: Get the form.

Download the SA106 and relevant helpsheets directly from GOV.UK, or add it as a supplementary page to your online Self Assessment. If you’re filing on paper, make sure you’re using the version for the correct tax year—HMRC updates the form annually.

Step 2: Gather your details.

You’ll need:

• The source and type of each overseas income stream (employment, savings, property, dividends, etc.)
• The gross amount earned in the local currency
• Any foreign tax paid, if you’re claiming Foreign Tax Credit Relief (FTCR)
• The total income converted into sterling, using the exchange rate at the time received or HMRC’s average rate for the year
• Any applicable Double Taxation Agreement (DTA) information

Step 3: Make key distinctions.

• Keep UK property separate from overseas property—mixing the two can confuse HMRC’s calculations.
• Record foreign savings income and dividends separately from other earnings.
• If you’ve sold assets abroad, note any capital gains that may trigger UK reporting obligations.

Step 4: Review before you file.

Check your currency conversions and totals carefully—small exchange rate errors can throw off your tax figures. Once complete, submit the form alongside your SA100 Self Assessment by the usual deadline.

📌 Pro Tip: Always keep original statements or tax certificates from overseas banks or employers. HMRC rarely asks for them, but when they do, having them ready can turn a stressful query into a 30-second upload.

Claiming Foreign Tax Credit Relief (FTCR)

If you’ve already paid tax overseas, the last thing you want is to be taxed again in the UK for the same income. That’s where Foreign Tax Credit Relief (FTCR) comes in—it’s HMRC’s way of preventing double taxation and keeping things fair (well, as fair as tax ever gets).

You’ll find the FTCR section within the SA106 form, where you’ll enter both your gross overseas income and the foreign tax paid. The form then applies the relevant rules under any Double Taxation Agreement (DTA) between the UK and the country where the income originated.

Keep in mind, FTCR isn’t unlimited. The relief is capped at the lower of:

• The UK tax due on that income, or
• The foreign tax actually paid abroad

For more complex cases—especially where multiple income sources or currencies are involved—refer to Helpsheet HS263 on GOV.UK for examples and detailed guidance.

📌 Pro Tip: Don’t guess at your foreign tax figures. Use official tax certificates or statements from overseas authorities—HMRC may ask for proof, and “I think it was about that much” won’t cut it.

Types of foreign income you must report

The SA106 form covers a wide range of overseas earnings—far more than most people realise. If money has crossed borders and ended up in your account, chances are HMRC wants to know about it.

Here’s what to include:

• Foreign employment income: Salary, wages, or bonuses from non-UK employers, including EEA and non-EEA countries.
• Foreign property income: Rent from overseas properties, including furnished holiday lettings within the European Economic Area.
• Overseas pensions: Income from foreign state, private, or company pension schemes.
• Foreign savings income: Interest from non-UK bank accounts and dividends from foreign companies.
• Other income: Payments from life insurance policies, trusts, and unremittable income (money earned abroad that can’t be brought into the UK).

Don’t forget to include any relevant supplementary pages when filing your Self Assessment. HMRC cross-checks data with foreign tax authorities—so even small amounts from overseas savings or shares should go through the SA106.

📌 Pro Tip: If you’re unsure whether something counts as “foreign income,” it probably does. Declare it now—HMRC will adjust if necessary, but they’re less forgiving if you skip it.

Common pitfalls and how to avoid them

Even the most seasoned taxpayers can trip up when it comes to foreign income. The SA106 supplementary form has its own quirks—and missing one small detail can throw off your entire tax return form. Here’s what to watch for:

Frequent mistakes include:

• Converting overseas income using the wrong exchange rate or the wrong tax year rate.
• Forgetting to claim Foreign Tax Credit Relief (FTCR) for eligible tax already paid abroad.
• Omitting foreign property income or overseas savings income, even if it’s been taxed overseas.
• Submitting the wrong version of the Self Assessment or skipping required supplementary pages when filing your tax return online.
• Overlooking special rules for furnished holiday lettings (FHLs) in the EEA, or failing to declare remittance basis and social security benefits.

Each of these can cause HMRC to query your return or recalculate your income tax, often with interest attached.

📌 Pro Tip: Before you hit submit, do a “foreign income sense-check.” Ask yourself: Did I convert everything? Did I claim FTCR? Did I include every source of overseas income? If the answer’s yes across the board, you’re golden.

What to do if you make a mistake or HMRC queries your return

Even with the best intentions, mistakes happen—especially when dealing with multiple currencies and tax systems. The key is to fix them quickly and keep your records airtight.

If you realise there’s an issue with your SA106 form, here’s what to do:

• Amend your Self Assessment tax return within 12 months of the original deadline. You can edit it online or resubmit a corrected paper return.
• Keep thorough records of all foreign tax paid, including certificates or official statements—these back up your Foreign Tax Credit Relief (FTCR) claims and any Double Taxation Agreement (DTA) use.
• If HMRC asks for clarification, have your exchange rates, helpsheets, and supporting documents ready. It’s not an interrogation—just a check that everything adds up.

📌 Pro Tip: When it comes to foreign income, transparency wins. A prompt correction or a clear paper trail is worth far more to HMRC than perfection on the first try.

Keep calm and file globally

Form SA106 may look intimidating, but it’s really just HMRC’s way of keeping your global income story straight. Once you understand what goes where—and how to claim relief for tax already paid abroad—the process becomes far less daunting.

A little preparation goes a long way: gather your figures, double-check exchange rates, and keep every tax certificate you can get your hands on. And if you’re unsure about how a double taxation agreement or Foreign Tax Credit Relief applies to you, don’t leave it to guesswork.

A quick free chat with a qualified adviser through Unbiased can help you clarify what to include, what to claim, and how to keep HMRC (and yourself) perfectly at ease when your finances go global.

Frequently Asked Questions (FAQ)