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Posted Fri, 22 Nov 2024 08:12:44 GMT by EMa_UK_SK
Hello, I live and work in the UK and am tax resident here. With my 3 siblings I jointly own property in Slovakia since 2013. We are thinking of selling the property now. Having consulted the authorities in Slovakia, upon selling the property, we would be exempt from tax there on the profit from the sale since we owned the property for more than 5 years. UK - SK double taxation treaty states: https://www.gov.uk/government/publications/slovak-republic-tax-treaties/2019-uk-slovak-republic-synthesised-text-of-the-multilateral-instrument-and-the-1990-double-taxation-convention-as-it-applies-to-the-slovak-republic#article-13--capital-gains - Article 13 — Capital gains : (1) Gains from the alienation of immovable property, as defined in paragraph (2) of Article 6 of this Convention, may be taxed in the Contracting State in which such property is situated. Since the tax in Slovakia where the property is situated would be 0%, I am confused how to interpret the Double taxation treaty on Capital Gains in relation to the UK - Does that mean my CGT obligation in the UK (on my 1/4 of the profit from the property sale) would be met since 0% tax in Slovakia OR Does it mean that I'd be subject to full CGT in the UK (i.e. no relief as 0% tax payable in SK) and I would need to file self-assessment reporting the Capital gains? Your assistance is much appreciated. Thank you.
Posted Wed, 27 Nov 2024 13:18:58 GMT by HMRC Admin 19 Response
Hi,
As UK resident, you would still be liable to CGT at the UK rate on any profit made on the sale of the property. The double taxation agreement only means that Slovakia will not tax you and as such there would be no double taxation relief to be claimed.
Thank you.

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