HMRC have issued a brief regarding claims by individuals for dividend tax credits in respect of dividends received from Finland, Greece and Ireland before 5 April 2008.
In the brief HMRC confirm that for the 2008-09 tax year taxpayers with less than a 10% shareholding in a foreign company who receive dividends from that company (provided it is not an offshore fund) are entitled to a dividend tax credit equal to one ninth of the amount of the dividend.
HMRC also clarify the treatment of such dividends which were received before 5 April 2008. Some taxpayers had argued that based on judgments given by the European Courts they were entitled to credits on such dividends received in the past. While HMRC do not accept this argument, based on legal advice HMRC will accept claims for some earlier years in relation to dividends from Finland and Greece, and certain Irish dividends.
The brief which contains further details can be accessed here