HMRC has issued a statement apologising for wrongly denying trustees the right to claim the new UK tax credit on foreign dividends. This entitlement to credit was introduced last year and applies to dividends from all foreign companies except where the claimant owns 10% or more of the company or where the company is an offshore fund.

However, the guidance issued by HMRC said that the trustees of an interest in possession in trust or a settlor interested trust were not entitled to this credit. They have now confirmed that this was wrong and trustees can claim the credit in the same way as for dividends from the UK company.