HMRC Admin 32 Response

Hi,

If your tax return shows disposal of dividends as dividends, then the foreign tax credit in the tax return can only be set against dividends.  

If it should be capital gains, you would need to amend the tax return to remove the diviends and add the capital gain.  

The FTCR would then need to be amended so that it is set against the UK capital gains liability.

Thank you.

Hi,

Apologies if there is a delay in your claim being reviewed.

To review you will need to contact our Self Assessment team.

Self Assessment: general enquiries

There will also be the option to webchat.

Thank you. 

Hi,

To calculate a capital gains liability, you first have to calculate the income tax liability. If all of the basic rate band of income tax is used up in the income tax calculation, there is nothing left of the basic rate band to allocate to the lower rate capital gains calculation. If there is an amout of the basic rate band not used in the income tax calculation, then this amount of unused BR band can be utilised against capital gains, by being applied to the lower rate band.  
For residential property and land the lower rate is 18% and the upper rate 28%.
For other types of capital gain, the lower rate is 10% and the upper rate 20%.  
There is a calculator below, which can be used to calculate the capital gain arising from a disposal of UK property and land.  

Tax when you sell property

You can save a copy of the calculation to your computer and move to the next screen to create a capital gains account at:

Report and pay your Capital Gains Tax

You can use this account to report and pay your capital gains tax from residential property and land. You should do so within 60 days of the completion date to avoid late penalties.  
If you have disposed of other kinds of assets, such as personal possessions you can report and pay the capital gains tax at:

Capital Gains Tax on personal possessions

Report and pay your Capital Gains Tax

Thank you.

Hi,

If you have paid UK tax on your income before sending it to your Indian bank account, it is only the interest arising from the money sent to the bank account, that would be taxable in the UK, as foreign interest.  

The capital would be the income you have already paid UK tax on, so would not be taxable again.

Thank you.

Hi,

Where you are UK resident and non domiciled, you are by default taxed using the arising basis, however, you can choose to use the remittance basis instead.  

If you use the remittance basis, you lose your personal allowance and become taxable on your UK income and capital gains plus any remitted income and capital gains.  

You declare the unremitted income and capital gains on the tax return, including a freehand note detailing the unremitted income and gains. 

If you bring the unremitted income / gains into the UK in a future tax year, it will be taxable in that future tax year.  

Have a look at section 9 on the remittance basis, as it is not always the best option for everyone and may increase your tax payble.

Thank you.

Hi,

It depends on how the property was actually owned.

Joint tenants
If you own a property as joint tenants, the surviving owner automatically inherits the deceased’s share. This is known as the ‘Right of Survivorship.’ It’s straightforward and doesn’t require any legal hoops.

Tenants in common
On the other hand, if you’re tenants in common, each owner has a distinct share in the property, which doesn’t automatically go to the surviving owner. Instead, the deceased’s share will be distributed according to their will or the rules of intestacy if there’s no will.

Thank you.

Hi,

You can open more than 1 but can only subscribe to 1 account (up to 05 April 2024). You can transfer funds from previous years at any time.

Thank you.

Hi,

1. You dont need to declare the inheritance.    
2. You would only declare this if the flat was actually left to you and it is you who has sold it as this would be a capital gain.

Thank you.