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Posted Wed, 14 Sep 2022 05:39:41 GMT by Varsha
In tax year 2021/22, I sold land (bare with no dwelling thereon) in Mauritius. The capital gains tax rate in Mauritius is zero. However as part of the sale I paid land transfer tax in Mauritius, which is 5% of the disposal proceeds. I have 2 questions: 1. Given that the chargeable asset was bare land with no dwelling in place during my period of ownership, do the reduced rates of UK CGT at 10% and 20% apply? 2. When computing the CGT payable in the UK for this transaction, is foreign tax credit relief available such that I can set off the land transfer tax paid in Mauritius against the UK CGT liability?
Posted Thu, 15 Sep 2022 13:56:49 GMT by HMRC Admin 19

For direct disposals of non-residential UK properties or land, or indirect disposals of any UK properties or land, put the total gains chargeable to non-residents Capital Gains Tax in box 52.2 of the SA106. This chargeable gain is taxable at the rates of 10% and 20%

To claim Foreign Tax Credit Relief, you will need to complete SA108 boxes 33 to 40.

Thank you.

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