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Posted Tue, 20 Feb 2024 14:04:29 GMT by
Thanks for your reply HMRC 5. The sale of our foreign house took place in Nov 2023 so this information wouldn’t normally have been submitted in a self-assessment form to HMRC until later in 2024. Can I submit self-assessment now to avoid losing £3k CGT allowance when the change takes place in April? If so, would I be filing a late SA for 22/23 or an early one for 23/24?Or is there another way I can avoid losing this allowance? Thanks
Posted Wed, 21 Feb 2024 11:53:28 GMT by HMRC Admin 25 Response
Hi pijin4,T
The capital gains allowance applies for the 23/24 tax year so as the property was sold in November 2023, you will still be entitled to the £6000 allowance when you submit the 23/24 tax return.
It doesn't matter that you are telling us the information in the 24/25 year - it is income for 23/24.
Thank you. 
Posted Wed, 21 Feb 2024 12:16:33 GMT by
Thanks for your helpful reply HMRC Admin 25.
Posted Mon, 22 Apr 2024 10:43:56 GMT by TarquinRK
I know that I have to file a Self Assessment return regarding the capital gain from the sale of an overseas property, my question is that as the proceeds are split 50/50 do we each have to indicate that it is a half share under Any Other Information (54) and if so do we give the UTR of that person.
Posted Mon, 22 Apr 2024 10:44:14 GMT by TarquinRK
I know that I have to file a Self Assessment return regarding the capital gain from the sale of an overseas property, my question is that as the proceeds are split 50/50 do we each have to indicate that it is a half share under Any Other Information (54) and if so do we give the UTR of that person.
Posted Mon, 29 Apr 2024 13:06:25 GMT by HMRC Admin 32 Response
Hi TarquinRK,

As the property is 50/50, each owner must declare their share of income and expenses. This doesnt need to be on a tax return as you can use the real time system.

Report and pay your Capital Gains Tax

Thank you.
Posted Sun, 30 Jun 2024 10:02:51 GMT by John Davies
Hi this Q and A forum is very useful understanding the complexities of owning a property abroad and selling it etc. We are now in the tax year 2024/25 so reporting CGT on a property sold now can be done on our next year's tax declaration ie by end Jan 2025? But what is the "real time system" as stated in the above answer? Thank you
Posted Sun, 30 Jun 2024 11:43:57 GMT by John Davies
Here's a further question on selling overseas property. I now have an indication that the CGT I will pay in Spain is going to more than my calculation of CGT here in the UK (24%). 1. Therefore do I have to declare CGT on a UK tax declaration for this year. 2. If the answer is yes, do I pay the CGT here and then claim it back? 3. If the answer is yes to 2. How does one claim it back with the operating double taxation agreement with Spain?
Posted Wed, 03 Jul 2024 11:16:11 GMT by Papastrato
Hi. I just sold a property in Spain that was my only private residence since I bought it in 2001 until 2010, when I rented it and moved to another one. I have been living in the UK since 2016 and I am aware that -after paying due taxes in Spain- I must pay CGT in the UK in my next 2024/25 Self-assessment. Could I claim Private Residence Relief for the time it was my residence? If the answer is yes, could I claim said relief in addition to the Foreign Tax Credit Relief? In which field of the online form should I input the calculation of the time it was my residence and/or the fact that I am claiming said relief? Thank you. PD. for John Davies: while most income of non-EU residents in Spain pays 24% (and, in the case of rents, not of the net, but of the gross income!), in the case of selling a property the tax is 19% of the profit. I found this out when filling my “Modelo210” online, that only allows to input 19% in the allocated field, even for a UK resident.
Posted Thu, 04 Jul 2024 07:29:37 GMT by HMRC Admin 20 Response
Hi john,
Yes you still need to declare it in the UK.
You can claim foreign tax credit relief to set against the UK tax that is due on the same source.
If Spanish tax is higher, you would then need to claim the excess back from them.
Thank you.
Posted Thu, 04 Jul 2024 07:42:47 GMT by HMRC Admin 20 Response
Hi John,
Yes, as it is a foreign gain, you will need to declare it on a self assessment tax return.  
In your self assessment tax return, you would complete the capital gains section , to report the gain and the foreign section, to claim up to 100% of the foreign tax paid.  
This will ensure that you avoid being taxed twice.
Thank you.
Posted Fri, 05 Jul 2024 13:33:41 GMT by HMRC Admin 13 Response
Hi, Papastrato
Yes you can claim private residence relief for the period you lived in it. 
You can also claim foreign tax credit relief to reduce any UK tax on the same source of income. You will take the residence relief away from the taxable gain figure and state on the return that you are making an election for PRR. 
For the tax paid in Spain you need to tailor your return to say that you are claiming relief for a foreign gain.

Thank you.
Posted Thu, 11 Jul 2024 08:07:39 GMT by HMRC Admin 25 Response
Hi John,
The real time system allows you to report the gain without the need for a full tax return.
If you want to use this system, you need to report the gain before 30 December to avoid having to do a full return.
Thank you. 

 
Posted Fri, 19 Jul 2024 11:47:52 GMT by Joseph Murray
I am a UK resident and have sold property abroad in Ireland. I am reporting capital gain through my oniine self assessment return. As instructed, I have filled in details of gain in Capital Gains section, checked Capital gains - foreign tax credit relief box in Foreign income details page and entered all transaction details in foreign capital gains section - including a statement of foreign tax paid (higher than UK liability). When I go to view tax calculation, the form calculates my foreign tax credit relief as £0.00 and my full tax calculation shows me liable to capital gains tax. Is there something wrong with the online form’s calculation?
Posted Sun, 21 Jul 2024 21:42:38 GMT by gilkelly
My brothers and I were equal beneficiaries in a property in Ireland inherited from our mother many years ago. We recently decided to sell the property and it was registered in my name to simplify the sale process and tax matters, while acting on behalf of the beneficiaries. The sale proceeded in my name and as legal owner, I have paid all the requisite capital gains tax to the Irish Revenue. This is at a higher rate than the equivalent in the UK. The proceeds have been equally divided between my brothers and myself. Each of us needs to report our share of the assets to HMRC. I understand that we can apportion the requisite share of the costs /expenses. I assume that we can also apportion the share of the tax paid to the Irish Revenue in order for each of us to claim foreign tax relief vis-a-vis the double tax agreement. Can you confirm? If I were to take all proceeds into my estate and then distribute them to my brothers, would these be then regarded as gifts? If so, they would be subject to considerable inheritance tax, should I not last the required 7 years - which would seem to defeat the purpose of the double taxation agreement.
Posted Tue, 23 Jul 2024 15:04:42 GMT by HMRC Admin 17 Response

Hi,
 
Yes, you need to claim it at the foreign section .

Thank you .
Posted Wed, 24 Jul 2024 10:27:10 GMT by HMRC Admin 21 Response
Hi gilkelly,
Inheritance tax is not covered by the double taxation agreement.  As  you and your brothers are the beneficial owners of the property, each of you will need to report the disposal in a self assessment tax return, with all figures in pounds sterling.  The acquisition and disposal costs such as solicitors fees, estate agent fees, should be split between each of the brothers, according to their percentage of ownership.  The same can be said for the Irish Capital Gains tax paid.
Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.  For your convenience, there are exchange rates at:
UK Government Web Archive/ukgwa/20231016190054/
Exchange rates from HMRC in CSV and XML format and for older rates at:
 UK Government Web Archive/ ukgwa/20100202113554/Exchange rates from HMRC in CSV and XML format.
You are free to use any of the supplied rates or one of your own choosing.
Thank you.
Posted Wed, 24 Jul 2024 12:56:25 GMT by gilkelly
Thank you for your very full reply, Admin 21. As explained, verification of capital gains payment from Irish Revenue in my name for the whole amount. Will my brothers require a copy of this for HMRC, in order to verify their claim for their share of the foreign tax paid?
Posted Fri, 26 Jul 2024 06:01:25 GMT by HMRC Admin 25 Response
Hi gilkelly,
If in your name only, your brother would need something in his name to confirm paid by him.
Thank you. 

 
Posted Fri, 26 Jul 2024 11:11:14 GMT by gilkelly
Thank you Admin 25. This seems to be at odds with the reply from Admin 21, which indicates the my brothers can claim their proportionate share of the tax paid by me on behalf of all of us.To simplify disposal (begun during Covid) Property registration, sale and Irish tax matters were all in my name. Proceeds had to be paid to me as legal owner - so all documentation is in my name including full settlement of CGT tax paid to Irish Revenue. All tax has been paid I need clarity on how HMRC will treat this. If HMRC will not accept my own and my brothers' claims for a proportionate share of foreign tax credit paid by me on their behalf, then their declaration of their share of proceeds will result in considerable further CGT taxation on them by HMRC - and the proceeds will be doubly taxed. If this is the case, I will have to declare total proceeds and total foreign tax relief in my self assessment. In which case, I presume HMRC will regard the shares of proceeds distributed to my brothers as gifts and therefore my estate will be subject to inheritance tax, should I not last the requisite 7 years. Obviously, I would prefer the former approach where we each declare our share of proceeds, but require clarity on whether HMRC will accept their claims for a proportionate share of foreign tax relief as indicated by Admin 21.

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