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Posted Tue, 03 Sep 2024 09:18:54 GMT by AB2121
Hello HMRC, Trying to understand ftcr for foreign income earned between end on Indian FY ie 31st March & UK FY 5th April. This is the 1st time it has happened, but my bank account, paid interest on 2nd April instead of the usual 31st March & there is some capital gains booked on the 4th April. For Indian tax purpose, these will be charged in next year's return, but for my UK tax they will need to be reported this year. Now I'm struggling to understand how to claim FTCR on this. I don't think I can claim any this year - as no tax paid in India. When I pay tax in India next year - I will not have this income to offset it against the ftcr! so in essence it seems I will pay tax twice on these transactions? that cant be correct, I'm certain I'm missing something. Please help me.
Posted Wed, 11 Sep 2024 15:43:03 GMT by HMRC Admin 20 Response
Hi,
You will declare the income as normal in the year it arises, once you have then paid the Indian tax, you can amend the UK return to then claim the foreign tax credit relief.
Thank you.

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