Capital gain from sale of land overseas

I am a UK tax resident domiciled in India. During August 2023 I sold a land in India and made a capital gain equivalent to £30000. I invested the capital gain in India under tax saving govt bonds for 5 years as per Indian tax laws. I cannot remit the capital gains to UK for 5 years as I cannot withdraw these funds for 5 years. Currently I am working in UK and I am basic tax payer with personal allowance of £12570. For my UK tax returns how these capital gains should be reported? - Does these capital gains of £30000 should be reported on arising basis or on remittance basis? - Do I have to pay any tax in UK on these overseas capital gains - If I opt for remittance basis will I loose my personal allowance for 2023-2024 tax year. Kindly advise Mr Shetty

Hi,

Please refer to guidance at:

Paying tax on the remittance basis (Self Assessment helpsheet HS264)

Thank you.

Thank you. If I opt for remittance basis, will I loose my personal allowance for 2023-2024 tax year against my UK income? Kindly advise.

Hi,

Yes. If you use the remittance basis, you lose your personal allowance and annual exempt allowance for capital gains. You will be taxed on your UK income and gains and any overseas income and gains remitted to the UK. The length of time you have been resident in the UK, may also mean that you have to pay the remittance basis charge.  Have a look at section 9 of:

Residence, domicile and the remittance basis: RDR1

Thank you.