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Posted Tue, 03 Jan 2023 09:51:50 GMT by Jonathan Hosgood
I have made an adjustment to this box to reduce my capital gains tax (as I have some foreign income that is double taxed) but this is not reducing my CGT do I also need to fill in a different box?
Posted Fri, 06 Jan 2023 15:58:26 GMT by HMRC Admin 32

You declare the Capital Gain in the Capital Gain section and also in the foreign section of the tax return. In addition, you claim Foreign Tax Credit Relief in the foreign section and enter the amount of Foreign Tax Credit Relief due at the start of the foreign section.  

Have a look at the guidance for SA106 and SA108. Although, both sets of guidance are set out for the paper tax return, the guidance still applies to the online return.

Foreign notes 

Capital Gains Summary notes

Self Assessment tax return forms

Thank you.
Posted Fri, 06 Jan 2023 16:22:44 GMT by Jonathan Hosgood
I am still not sure about this. I have included - to use rounded numbers £42,000 of income as Untaxed Foreign Income and as Capital Gains (Carried Interest) but I only received this money once (not twice). The £42,000 is currently being taxed twice as it is included twice in the tax return. The adjustment in box 65 is £11,800 (28% of 42,000) to avoid this double taxation and to ensure I pay the higher rate of income tax not capital gains, but the entry in box 65 is not doing anything. I have not already paid any tax on the £42,000, so am not strictly speaking trying to claim foreign credit tax relief as I understand it. The aim is to avoid being taxed twice and to pay income tax on the £42,000 not carried interest capital gains tax. (Because for some reason some of my carried interest was paid as interest, not share sales). So, is it definitely the case I should also deduct 11,800 from one of the foreign tax relief boxes? If so, do I also still need to fill in box 65? Might it be better just to reduce my carried interest by the £42,000 than report it twice (even though I am reporting it correctly the tax calculation is coming out incorrect and this would solve it). Sorry for multiple questions but I would like to know I am doing the right thing.
Posted Thu, 12 Jan 2023 10:56:26 GMT by HMRC Admin 19

You will need to contact the Self Assessment team for a specialised reply.  

Self Assessment: general enquiries

Thank you.

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