Capital gains tax and MALTA property

My wife and I are UK residents. We have just sold a property in Malta we used for family holidays these past 30 years.The property is situated in an urban conservation area (UCA). This means that the property is subject to certain legal building constraints eg cannot be demolished or subjected to structural alterations or additions or divided into more transferable units. To compensate the seller for these legal strictures no final withholding tax (CGT) was due to Malta tax authorities. So basically we have saved the capital gains tax due to the maltese tax authorities. In view of the UK /MALTA bilateral tax agreement will the UK tax authorities recognise and honour the capital gains tax exemption conditions laid out by the Malta authorities.

Hi Rob Butler,
No.
This is still the sale of an asset that needs to be reported,
Thank you.

Thank you for your answer. I realise that we still have to report the sale and there will be CGT obligations. However, I would like to know if the UK tax authorities will recognise and honour the relief given by the MALTA tax authorities.

Hi,

No, as that is pertinent to the tax rules of Malta only and not applicable in the UK.

Thank you.