HMRC Admin 19 Response
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RE: CGT on a property that wasn't put in their name
Hi,
Yes, Capital Gains Tax may be payble. The person who inherited the share of the asset is the 'beneficial owner' of the 50% share of the property, even if their name does no appear on the title deeds. This means they may be liable to Capital Gains Tax on the disposal of the property. They will receive the funds arising from the dispsosal. Please have a look at the guidance below, it includes a capital gains calculator and links to register for a capital gains account, report and pay the Capital Gains Tax within 60 days of the completion date.
Tax when you sell property
Thank you. -
RE: Indian Sourced Income (dual taxation) - How do I declare it on Self Assessment
Hi,
You will need to review the guidance on statutory residence to determine your residence status here:
RDR3 Statutory Residence Test
If you are tax non resident for the whole tax year, you would not be required to declare this income in a tax return.
If you are tax resident for the whole tax year, you would be required to declare it and claim any appropriate foreign tax credit.
Thank you. -
RE: Self-Assessment for saving interest.
Hi,
Provided your foreign interest is untaxed, you can use box 3 for interest of £2000 or lower.
The alternative is the interest section of the foreign page, SA106, or online return.
Thank you. -
RE: Mortgage interest tax relief - Foreign property rental fee
Hi,
The tax treaty allows for Hong Kong to tax your rental income first. HMRC will also have the right to tax your rental income in a Self Assessment tax return, under your worldwide income in the foreign section. You will need to work out your net profit using GBP sterling.
You will also be able to claim for interest charged on the mortgage in the box 'Residential property finance costs' on your online return or box 44 of SA105:
UK Property
Thank you. -
RE: claim foreign tax credit relief
Hi William KD,
If you are declaring a foreign capital gain, you need to declare this in the capital gains section, to bring the gain into the calculation and also in the foreign section where you declare the foreign tax paid. You can also declare a foreign tax credit to set against the gain in the calculation.
Thank you. -
RE: Private Residential Relief flat
Hi,
You may have to pay Capital Gains Tax if you make a profit when you sell, or dispose of, property that is not your home. You can work out if you need to pay Captial Gains Tax when you sell, or dispose of your home and find out if you are eligible for Private Residence Relief using the following guidance:
Tax when you sell your home
Thank you. -
RE: Repayment Pending? It has been over 5 months
Hi B Kaps,
We are sorry to hear about your experience and regret any inconvenience caused. Unfortunately, it is not possible to check individual tax records through this forum and can only signpost you to our helpline:
Income Tax: general enquiries
If you would like to file a complaint you can do so here:
Complain about HMRC
Thank you.
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RE: How to update personal information for Self Assessment profile
Hi,
If you are unable to log in to your online account you will need to contact our online services team for advice.
Technical support with HMRC online services
Thank you. -
RE: Overseas insurer hasn't issued PLA6
Hi,
Part A of the form should be complete by the company or society paying the annuity and part B onwards, should be completed by you.
PLA6 04_08
You can see further information here:
IPTM4360 - Purchased life annuities: partial exemption scheme: procedure relating to part C of form PLA6
Thank you. -
RE: Can I gift my pension tax free lump sum to my children?
Hi,
There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax. Further guidance can be found here:
Tax on savings interest
Tax on dividends
Inheritance Tax is a tax on the estate, property , money and possessions of someone who has died.
There is normally no Inheritance Tax to pay if the value of the estate is below the threshold of £325,000.
Inheritance Tax is only due when a person's estate is worth over £325,000 when they die, or if the person who died gave away more than £325,000 in gifts in the 7 years before they died.
Gifts made in the last 7 years before someone dies, use up the £325,000 tax free allowance first, but if the gifts received are less than the £325,000 Inheritance Tax free allowance, any unused threshold can then be used by the estate of the person who has died.
If the person who died owned their home, or a share in it, the tax free threshold could be increased to £500,000.
You can find out more information here:
Work out Inheritance Tax due on gifts
Thank you.