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Posted Sun, 10 Dec 2023 14:20:39 GMT by
I would like to understand UK CGT impact if 100% of the gain amount from the sale of a property in India is reinvested in an Indian government recognised CGT tax savings options e.g. 54EC or 54F. There is NO CGT amount to be paid to Indian tax authorities if 100% of the gain is reinvested. Note: The invested money is locked for a period of 5 years and cannot be withdrawn, if invested in schemes like 54F. Question is will I still be subject to CGT @28% in the UK in this scenario where 100% of the gain is reinvested and I am legally excemt from CGT in India? I am a British citizen but hold an OCI (Overseas Citizen of India) card,
Posted Fri, 15 Dec 2023 12:09:58 GMT by HMRC Admin 20 Response
Hi mnvinod,
As a UK resident, you are liable to pay tax on your worldwide income and capital gains, whether your remit them to the UK or not.  
There is no relief for individuals (apart form private residence relief) who re-invest their gains in other assets.  
You will need to convert all the acquisition and disposal costs into pounds sterling to work out if their is a gain.  
The gains will need to be reported on a self assesment tax return.
Thank you.

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