Foreign Capital Gain

Dear team, I moved to the UK in 2021 and I am UK resident taxed on the arising basis. I am planning to sell a buy-to-let property in Germany in November 2023. The UK / Germany DTA says in Article 6 Germany may tax this income (ie the gain on sale). In Germany this is taxed as "sonstige Einkünfte" which is related to income tax. I will declare this in my German tax return for 2023 in September 2024 and will pay the tax due. I understand in the UK I am taxed on my worldwide income and have to report this as a capital gain in my 2023_24 self assessment (SA 106 and SA108). The chargeable gain is re-calculated under UK tax law. I can claim FCTR although the tax paid in Germany was income tax and the tax payable in the UK would be capital gains tax. However, it is likely I have to pay more tax in Germany than in the UK so should have a zero tax liability after applying FCTR. I still would have to report this to HMRC by 31.01.2025. Is this the correct approach to declare the capital gain in particular I do not have to report it earlier? Thanks! Matt

Hi Matt
If you don't already complete a tax return, you can report it using the real time service.
Report and pay your Capital Gains Tax
Thank you. 

Hi there, but if I already do self assessment returns I can wait until 31.01.2025 can't I? Also for a FCTR claim must the foreign tax been due as filed or already been paid? Thanks.

Hi,

If the income is in 2023/24 then, yes, you can wait until 31 January 2025. If you have not paid the foreign tax due to not receiving a bill, you would not claim it in the return. If you have got a bill but not paid it, you can claim the credit.

Thank you.