If I am a UK resident, and own a rental property in Canada, and pay tax in Canada as a non-resident, and have a mortgage with a bank in Canada, where should I claim relief/credit for:
- tax already paid on rental income in Canada (to avoid double taxation)
- interest paid on mortgage in Canada
When selling foreign assets (shares or property) to calculate proceeds in GBP I will use exchange rate from
applicable at the time of the sale.
If I purchased it years ago which exchange rate should be used to calculate the costs: the same rate as above (applicable at the time of the sale) or the rate from the time of purchase/acquisition?
Thank you for your answer. I am now confused since I thought that on remittance basis I can't freely transfer money from a foreign bank account after moving to UK if that money was earned after my move.
In particular, I thought my question is related to "mixed fund", documented in
I have also found this question
which seems to be of a similar nature.
After reading various HMRC pages on that topic I couldn't figure out whether the account that had history, and is brought to balance of 0, becomes a "clean" account in the context of "mixed funds".
Can you, please, comment on that?
I report taxes in UK on non-domiciled remittance basis. I have a foreign checking/current account where in the past I had money but currently the balance is 0. I will have foreign transactions where I will have gains, and want to report these gains on my UK tax return, and transfer (remit) that cash to UK.
In order to transfer cash to UK without any HMRC charges/taxes:
- can I add newly earned money to the existing account and then transfer it to UK, or
- do I need to open a new account for that purpose?
If I sell shares abroad, and report it on my tax return can I transfer all cash proceeds without any additional taxes or fees to UK?
For example, if the cost base of shares was 10,000 and I sell it for 11,000 (hence I have a gain of 1,000) can I transfer to UK 11,000 or just the gain of 1,000?
If I sell shares for 9,000 (hence I have a loss of 1,000) can I transfer sale proceeds of 9,000 to UK without any taxes or fees?
This question is only about money transfer from abroad, not about capital gains. I only want to know am I able to transfer full cash proceeds from the home sale abroad to UK without paying any additional taxes in UK.
For example, I purchased in Canada a rental property before I moved to UK. It cost base was 300K. If my total proceeds from sale are 350K can I freely transfer 350K cash to UK? If I sell for 250K can I freely transfer 250K to UK?
I would report this sale on my tax returns in Canada and UK, and pay all taxes as necessary. My question is only about transfer of cash proceeds from Canada to UK.
For a non-domiciled resident is this correct when selling a real estate property (residential flat) abroad, and later reporting capital gain or loss for the sale on the UK tax return for that year:
a) I can transfer the proceeds from the sale to a UK bank immediately after the sale, and there are no additional fees or taxes in UK related to that cash transfer from abroad.
b) Regardless of whether there was a gain or loss I can transfer all gross proceeds from the sale to a UK bank.
c) Regardless of whether I use remittance or arising basis for that tax year, and whether I use remittance or arising basis in previous or future years, the same procedures and rules apply to reporting this particular capital gain or loss, and to the related transfer of proceeds to UK.