taps1234 ag

Hi, Lets say a person has a 20 year insurance policy in INDIA. The person pays an annual premium of £600 every year for the last 19 years. After 20 years the insurance policy matures and the policy pays out a lumpsum amount of say £10,000 As per the note over here https://www.gov.uk/government/publications/gains-on-uk-life-insurance-policies-hs320-self-assessment-helpsheet/hs320-gains-on-uk-life-insurance-policies-2021 this falls under the category of QUALIFYING POLICY ( Even Annual Premiums and each premium is < £3600 ) and hence is my interpretation correct that that the lump sum payment would NOT be taxable in the UK. Please confirm

Thanks for the response. But Sorry, I am and always do an ONLINE TAX RETURN every year. I understand your response that SA106 and SA108 are needed for PHYSICAL RETURNS. That part is clear. BUT, for an ONLINE TAX RETURN, I have already gone to "3-Tailor your return" and to "4-Fill in your return" and ENTERED the capital gains using the "Capital gains computation worksheets" that are provided within the ONLINE ASSESSMENT FORM. IS IT CORRECT TO PUT THE AMOUNT OF CGT (capital gains tax) taken off by Indian Tax Authorities in this field "Tax adjustment to 2022-23 capital gains" -- YES or NO ? IT SEEMS TO WORK... I did put the INDIA CGT in that field ( as a negative figure) and I do notice in the final calculations, that the adjustment is happening. Thank you once again.

Thanks HMRC Admin 32. However I still have a query. I am doing SELF ASSESSMENT and I have already gone to "3-Tailor your return" and to "4-Fill in your return" and ENTERED the capital gains using the "Capital gains computation worksheets" that are provided within the SELF ASSESSMENT FORM. My question is very specific -- ( and would appreciate a YES / NO answer). IS IT CORRECT TO PUT THE AMOUNT OF CGT (capital gains tax) taken off by Indian Tax Authorities in this field "Tax adjustment to 2022-23 capital gains" -- YES or NO ? If NO, in which other field should I put the "Amount of India CGT taken off".

Dear HMRC ADMIN, Today I made another attempt at the Self Assessment Form and used the Capital gains worksheet Capital gains computation worksheets THERE ARE THREE FIELDS ( TEXT BOXES ) WHERE I CAN POSSIBLY PUT THE AMOUNT OF CAPITAL GAINS TAX PAID IN INDIA: 1) Deduction, if any, in respect of reliefs and elections: (optional) 2) Allowable costs (including purchase price) 3) Tax adjustment to 2022-23 capital gains Most probably I should use the third field - "Tax adjustment to 2022-23 capital gains" as the help text states that "You may need to enter a net adjustment figure here if: your capital gains has Foreign Tax Credit Relief" and to enter that as a NEGATIVE AMOUNT Is that right ? Can you please confirm ? I know there is time until 31-Jan-2024 but would appreciate a prompt reply as I need to ensure that funds are available to pay the CGT to HMRC UK.

Hi Admin @HMRC -- I found this field on the SELF ASSESSMENT FORM Tax adjustment to 2022-23 capital gains Adjustment to Capital Gains Tax: (optional) Should I enter the amount of CGT deducted by India, over here?

On sale of house in India, the Indian tax authorities have deducted a huge amount of capital gains tax (CGT) Now under self assessment, when I report the said capital gains to UK HMRC, wont UK HMRC deduct the capital gains tax already paid in India / already taken off ? On the self assessment form, for foreign income, UK HMRC does take off the foreign tax for Interest income and rental income but for Capital Gains tax on the self assessment form, I could not even find a text-box where I could enter the amount of tax taken off in India. Is this normal ? for CGT, does UK HMRC completely ignore the CGT paid in India ?

Yes. For selling property OVERSEAS ( Outside UK) the deadline for filing the Capital Gains Tax is 31-Jan-2024. This is my interpretation of the writeup on gov,uk i am not hmrc