ACCA Advanced Taxation (ATX) Practice Exam

True or False: An individual can use savings income NRB or dividend NRB against remitted overseas savings or dividend income.

1. True

2. False

3. Only in specific circumstances

4. Only if originated from the UK

The correct answer is: False

The statement is false. An individual cannot use the savings income nil rate band (NRB) or the dividend NRB against remitted overseas savings or dividend income. The savings income NRB and dividend NRB are only applicable to income that is considered taxable in the UK. Since remitted overseas income relates to income that is not earned or derived from UK sources, these reliefs do not apply. In the case of UK taxpayers who are resident but not domiciled, only the income and gains that are brought into the UK from overseas will be subject to UK tax. Therefore, any overseas savings or dividend income remitted to the UK cannot benefit from the savings or dividend NRB that pertains to UK-source income. Understanding these distinctions is crucial when navigating the complexities of the tax system, especially for individuals with international financial interests.