If you have given a declaration to receive interest without deduction of tax because you were not ordinarily resident, you must tell your bank or building society as soon as you become ordinarily resident. You will be liable for UK tax on the interest for the whole of the tax year in which you return to the UK, unless it is relieved under a double taxation agreement for the period before you return. Depending on your total income, you may be liable to tax at the higher rate on the interest. You may be entitled to the tax credit which normally attaches to the dividend if there is a double taxation agreement between the UK and the country in which you live allowing you to claim all or part of the tax credit to which a UK resident would be entitled. If any tax credit you are entitled to is greater than your liability to UK tax, you are normally allowed to make a claim for the balance to be paid to you.
Dividends count as UK income.
You are normally liable to tax on the total of the dividend and the tax credit attaching to the dividend. You can use the tax credit to meet all or part of your tax liability. In that case you will be treated as having already paid tax at the lower rate. There is no tax credit in the case of a foreign income dividend. Where a dividend is paid by a UK company out of foreign source income, the company may make an election for it to be treated as a foreign income dividend .