Suppose an American expat taxpayer living in the United Kingdom earns dividends on U.S. stocks that fall below the UK's tax-free dividend allowance of £2,000, and this is the only income they have from outside the UK. Assume that they do not have capital gains, or any other circumstances that would cause them to have to file Self Assessment.

It seems that such an individual does NOT have to file Self Assessment.

But does the situation change if the taxpayer has to pay some nonzero amount of U.S. tax on these dividends? (I have read that generally speaking, if a person is a UK tax resident and needs to pay tax on income from outside the UK, then they have to file Self Assessment, but I'm unclear on whether that applies to this specific edge case.)

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    I don't know the answer for US dividends (you wouldn't need to tell them for UK ones)... I'd suggest using either webchat or phoning HMRC to ask. If there IS a need to report these dividends, doing so in the chat/call may be sufficient. These days, many things can be reported that way without the need for a full self-assessment. – TripeHound Oct 3 '20 at 12:21

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