Skip to main content

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

Posted Fri, 17 Nov 2023 17:09:36 GMT by
Hi I am a UK tax resident and a higher-rate tax payer. during 22–23, I disposed of my Indian Let out residential property. The Indian Tax return has been submitted regularly and they have deducted tax on the Capital gains Tax deducted £22000 The Cost of the property converted to GBP £66000 ( no indexation, purchase price converted to GBP using approved HMRC exchange rates) The disposal price net of selling cost was £98,000 Capital gain overseas: £32000 (-) CG exemption: £12,300 = Taxable Capital gains £19700 @ 28% CG tax: £5516 Questions : [1] Do i still need to complete SA108 in my self-assessment and give all the above information in Box 54? 2] I paid £23,000 in India towards capital gain tax, but I have received a full refund being a non-resident of India. Am I right in saying I should not claim any foreign tax relief for my UK tax return and just pay £5516 due and calculated above? OR I claim £5516 of capital gain tax relief for this overseas property capital gain, i.e., equivalent to UK capital gain tax? Thanks in advance
Posted Wed, 22 Nov 2023 11:00:10 GMT by HMRC Admin 20 Response
Hi Tamsin Smith,
Yes you will need to declare the gain in a self assessment tax return on SA108.  
As you received a full refund of capital gains tax in India, you cannot claim overseas tax relief, as no overseas tax was paid.
Thank you.

You must be signed in to post in this forum.