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Posted Fri, 22 Nov 2024 15:33:40 GMT by Anne Corcoran
On self assessment I have completed Foreign Income & declared Capital Gains on sale of holiday flat in France. I paid CGT in France to the French authorities on the sale - do I get this amount of tax already paid on the gain taken into consideration by HMRC ? If so what form / part of self assessment do I need to complete
Posted Wed, 27 Nov 2024 15:23:36 GMT by HMRC Admin 20 Response
Hi,
You need to tailor the return at section 3 and answer yes to the question - do you wish to claim foreign tax credit relief on capital gains, this then
opens up the box for you to enter the amount.
Thank you.
Posted Thu, 28 Nov 2024 13:35:15 GMT by Anne Corcoran
I have tailored the return to include Yes to claim foreign tax credit & entered the amount but in the final calculation of tax owing there is no recognition of capital gain tax already paid in France on the total gain
Posted Thu, 28 Nov 2024 13:41:32 GMT by Anne Corcoran
On a gain of 114k I have already paid £10500 in France - another £20k (which is the current tax calculation on self-assessment ) would make it 27% CGT for a basic rate tax payer ??
Posted Tue, 03 Dec 2024 14:44:28 GMT by HMRC Admin 17 Response

Hi ,
 
For the foreign tax paid on a capital gain, you need to tailor your return at section 3 and answer the question on the

first page - do you want to claim foreign tax relief on capital gains.

This then opens the correct box .

Thank you .
Posted Tue, 03 Dec 2024 14:53:54 GMT by Clive Smaldon
Not HMRC...The gain tax rates are split, using your basic rate band first, so first part of the gain at 18% up to unused amount of £37700 then the balance is at 28% for 23/24 so a rate of just short of 27% more than possible if not much BR band remaining after salary/earnings/other income.

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