Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 11 Jun 2024 02:37:37 GMT by DTAadvice
Not sure if is the right forum? I am a UK Citizen, UK Nonresident, Thailand Tax resident. Regarding a possible future sale of UK rented property. I understand about CGT as regards the UK. I am getting conflicting advice regarding the Thailand UK Double Tax Agreement, can you please confirm the meaning of Article 14, paragraph 1 of the DTA? "Capital gains from the alienation of immovable property, as defined in paragraph (2) of Article 7, may be taxed in the Contracting State in which such property is situated." I am told by a Tax Lawyer, who is a Director of a large company so a knowledgeable and reliable source that, the words "may be taxed" are not used in the usual Laymans terms, instead in this legal situation they mean that because the UK has CGT legislation it is only subject to CGT legislation in the UK and not subject to Thailand's tax laws. As I said I have read other conflicting articles and have spent hours trying to get the answer. Please confirm the intention of 14,1 of the DTA.
Posted Thu, 13 Jun 2024 15:06:41 GMT by HMRC Admin 20 Response
Hi,
As the property is in the UK, we have the rights to tax any income that is generated from the property whether it be rental or capital gains.
Your country of tax residence also has the right to tax you on your worldwide income which would include the sale of the UK property.
Foreign tax credit relief would be allowable to set your UK tax against any tax due in Thailand.
Thank you.

You must be signed in to post in this forum.