Skip to main content

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

Posted Tue, 14 May 2024 20:09:19 GMT by Wicks87
I sold my property in Beijing, China last year. I am UK citizen and do online self-assessment. So I'm looking at submitting a self-assessment before 31 Jan 2025 to declare this capital gains. I believe Double Taxation Agreement (DTA) means relief in the way of credit for foreign tax paid (FTCR) is available is available to me. https://www.gov.uk/government/publications/foreign-tax-credit-relief-capital-gains-hs261-self-assessment-helpsheet/hs261-foreign-tax-credit-relief-capital-gains-2018 A few other questions arose as part of my research/preparation: 1. Do I need to translate all evidence related to the sales, tax and allowable expenses? Does this have to be done by a third-party translation service with some approved certification? If so, what would that be? 2. Do all those evidences must be uploaded in “Disposed chargeable assets” – “add attachments” section? 3. Are travel costs to China, in order to facilitate sale of property, count as allowable expenses? 4. Just to confirm, dependent resident relief would not apply to this property that was purchased in 2013. :( 5. The payment will be a large sum as an individual, and not full amount have been transferred into UK. Is there any possibility to spread payment over 2-5 years? Which section of online self-assessment do I fill in to do this and is there any interest applied? Thanks very much
Posted Fri, 17 May 2024 09:16:45 GMT by HMRC Admin 25
Hi Wicks87,
1. The income/expenses need to be converted to sterling but the evidence is not yet required
2. You do not need to upload them at this time but they may be asked for at a later date at which time they must be translated to English
3. If it was solely for this then yes.
4. Correct
5. As you have already had the benefit of the gain it would be expected to be paid in full by the due date.
You would need to apply for a payment plan but there is no guarantee this would be approved.
You cannot include this request in the return as this would need to be done separatley.
Interest will be applied if not paid by the due date.
Thank you.
 
Posted Tue, 06 Aug 2024 13:25:08 GMT by Wicks87
Thank you so much for your answers. Just doing online self assessment. Am I doing this correctly? In "Change foreign capital gains" page. "Amount of chargeable gain under UK rules" - enter the gain calculated in "Residential property" "Foreign tax paid: " - enter CGT I've paid in China. But when clicking view calculations, the form is asking "Type of gain" - select "other gain" and "Is this an attributed gain?" From looking online, such as this page: https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg18033 I guess my gain is not attributed gain. Not related to trusts. The web form then informs me "Total foreign tax credit relief on gains: £0" Why hasn't it taken into account of "Foreign tax paid" field?
Posted Thu, 08 Aug 2024 16:31:50 GMT by HMRC Admin 25
Hi Wicks87,
Once you have entered all of the boxes you need to complete, work your way to the calculation to view the capital gains tax that is calculated. Compare this figure to the Foreign Capital Gains Tax paid and take a note of the UK capital gains figure.
You can claim up to 100% of the foreign tax paid, so you click on back and work your way back a few screens to the "View your calculation Capital gains - foreign tax credit relief and Special Withholding Tax"
It will show the foreign tax credit as £0.00.
You change this to either 100% of the foreign tax paid or the UK capital gains figure (which ever is the lower).
Save and continue to view your calculation.
Thank you. 
 

You must be signed in to post in this forum.