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  • RE: EIS vs FTCR tax credit hierarchy

    Thank you for this. However, the guidance does not mention FTCR specifically & hence my question. Please could you help & answer the question, whether EIS credit ca be taken ahead of FTCR. Thank you.
  • RE: foreign court case compensation income conversion to £

    sorry, dont understand? what do you want me to copy paste?
  • RE: EIS vs FTCR tax credit hierarchy

    Hi, I'm afraid I don't understand. Are you saying i cannot use EIS relief to offset my UK tax due on foreign income? What I'm asking is that calculating my UK tax inc foreign income, can i offset the calculate tax 1st preferentially against the EIS relief available ...& then use FTCR for i don't have enough income to use both for this year! & would like to use EIS relief available instead of FTCR. to clarify in numbers say: my tax due is 1500£, FTCR i can claim is 800£, EIS credit available is 1200£. Can i use 1200£ EIS credit & set off balance ie 300£ tax due against FTCR?
  • foreign court case compensation income conversion to £

    Hi, I have received compensation from court in India, for some money I had loaned in 2017. The loan was extended in Indian Rupees (INR) & all payments in India re in the same currency. I wanted to understand on how to calculate the compensation amt in GBP- effect of currency exchange rates over 5 years. In order to calculate the amount in £, should I convert the original loan amount, payments received in Indian Rupees (INR) to £, using the conversion rate at the time. The excess would be income in GBP, similar to how CG is calculated. Is this correct? or simply take the excess in INR & convert to £ using the year's average rate? The reason is that there is a 20%movement in the exchange rates in the 5 years. Just to make it clear, say the loan amt is 10k INR or 120£ at the date, returns from court total to 15K INR or 150£ at the dates received, so is my taxable income in UK be 5K INR =50£ (using FY average conversion rate) or would it be 30£ based on the above conversions. Thank You
  • EIS vs FTCR tax credit hierarchy

    Hello, I have some foreign income & resultant FTCR, made some EIS investments in the year & hence resultant EIS income tax credit. However, unfortunately do not have income to offset all the tax credits. Is there a credit hierarchy? Or can I choose to offset my income tax due against EIS tax credits first & any balance income tax due against FTCR? Thank You
  • Tax calculation – court case

    Hi, I had loaned money to a family friend in India in 2017, the agreement was for him to pay an interest of 10% pa. However, after the 1st quarter no interest was ever paid, the postdated cheques he had given me were dishonored, the property papers he had kept with me as security were also bogus. After a lot of aggravation & a long court case – criminal case in India for cheque dishonor, the court has given a verdict in my favour. Please could you help me with the tax calculation & the following questions: 1. The entire court awarded compensation / penalty/ appeal forfeited amount will be taxable in UK. Note: it is taxable in India. 2. Allowable expenses in India - legal fees, my travel expenses to attend court. Presumably the same expenses can be deducted here too. Please confirm. 3. The income would fall into interest income under DTAA provisions? Please confirm. 4. Would I get saving allowance credit on the income? Please confirm. 5. Income amount calculation- effect of currency exchange rates over 5 years. In order to calculate the amount in GBP, I converted the original loan amount, payments received in Indian Rupees (INR) to GBP, using the conversion rate at the time from HMRC website (monthly average rate used). The excess would be income in GBP. Is this correct? Just to clarify, created a table below…based on this my taxable interest income will be 4883 GBP total. Original Loan amount : 1,000,000 INR 19/1/2017 GBP/INR: 83.99 11906 GBP Payments schedule: Appeal amt forfeited 200,000 INR 23/5/2022 GBP/INR:99.42 2012 GBP Payment-1 450,000 INR 6/2/2023 GBP/INR:100.70 4469 GBP Payment-2 350,000 INR 13/4/2023 GBP/INR:101.11 3462 GBP Payment-3-4* 700,000 INR GBP/INR:102.23 6847 GBP Total amount receive from court* 16,789 GBP Gain over original loan amt* 4,883 GBP * future payments, indicative rate used for explanation. 6. As seen from above table, for the last FY, I have not received the original loan back & as such no gain is made. However, as the forfeited amount is considered as excess over original amount, I have paid tax on it India & will declare 2012 GBP in UK income for FY2022-23 returns. I hope this is correct? I'm very sorry to post such a long post but i really need help. I will be very grateful, if you could please spare sometime for this. Thank You.
  • Capital Gain calculation-chattel

    Hi, I’m in the process of selling personal items – jewellery, watches etc, each single item or a set e.g. pair of earrings/earrings-pendant is less than 5k, however the combined value of sale would be around 20k. I intend to sell to the same shop in one transaction. Please can you confirm that since each single item/ set sells for less than 6k, no capital gain tax will be due & I don’t need to declare on the return form as well.