HMRC Admin 10
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RE: Should CGT be paid on a temporary gain?
Hi
As there is no requirement to declare losses to HMRC, the only way to declare losses is either by completing a self assessment tax return and declaring the losses there or in writing to HMRC.
The online PPDCGT service is only used to report gains.
The disposal of your first property generate a loss. Keep a note of the loss and add it in to the PPDCGT report for the gain on the second disposal. After the disposal of the 4th property, resulting in a gain, you can log into your capital gains account and submit a gain for property 4 minus the loss for property 3.
In your self assessment tax return, you would complete the section for capital gains on residential property, with summary details of all 4 properties. The disposal proceeds, the allowable costs (including purchase price), the gains in the year before losses and the losses in the year.
You would also declare the total gains reported on PPDCGT return and the tax paid.
Calculations of each individual disposal can be submitted as supplementary evidence. -
RE: CGT on Main Residence Property
Hi
You can claim private residence relief using the formula number of months the property was your main residenct, plus a further 9 months, over the number of months you owned the property, times the capital gain.
The private residence relief is (198+9/212)*gain.
The relief is deducted from the gain, leaving the amount chargeable to tax. -
RE: non uk resident/citizen inherit estate from uk resident
Hi
As your question is speculating about inheritance tax some time in the future, we don't know what inheritance tax legislation will be in the future, so cannot answer it. -
RE: Section 20 Works offset against CGT?
Hi
In general, repairs and maintenance costs are considered reveneue expenses and can only be set against the profit from rental income.
If this property is your main residence, then you can claim private residence relief, to offset any gains that may arise on disposal of the property. Improvements that increase the value of the property by adding something that was not there before could be considered a capital expense and set against any gains that may arise. -
RE: Saving account interest from Indian bank account(NRE)
Hi
The credit for tax paid is 15% of the interst.
A foreign tax credit of up to 15% can be claimed in the tax return, even if no overseas tax is paid. -
RE: Starting date of the UK 'home' for split year treatment
Hi
We can only provide general information / guidance in this forum.
For an answer to a detailed question of this nature, you would need to contact our self assesment helpline on 0300 200 3310, or seek professional advice. -
RE: When does HMRC contact about ISA
Hi
You should contact the provider of the the second cash ISA and inform them of this error.
They will close down the second ISA and refund the money paid into it to you. -
RE: 10 year limit for tax spared relief on NRE deposits interest
Hi
Although NRE interest income is not taxable in India NRE interest income has often been mistaken as non-taxable in the UK this is incorrect, UK tax residents are subject to UK taxation on their worldwide income and gains subject to any remittance basis claims.
Under the UK-India Double Tax Convention, NRE account interest taxable in the UK can receive credit for Indian tax even if this has not been paid as the credit relief amount is calculated through the tax spared mechanism, which deems Indian tax to have been paid at the marginal rates applicable there. (UK-India DTC notes page HMRC’s Double Taxation Relief Manual DT9553).
Under the UK-India Double Tax Convention, NRE account interest taxable in the UK can receive credit not exceeding 15% for Indian tax even if this has not been paid.
UK tax relief not exceeding 15% is available for ten years from the opening date of the NRE account per Article 24(5) UK-India Double Tax Convention.
NRE interest income should be declared within an in individuals UK self-assessment return.
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RE: Private Residence Relief
Hi
If you are UK resident in the tax year at the time of disposal and no capital gains tax is payable, there is nothing to report.
If you are not UK resident at the time of disposal, you still need to declare the disposal, whether tax is payable or not. -
RE: CGT Reporting Limit
Hi
Up until 5 April 2023 the threshold was 4*£12300 = £49200.
From 6 April the threshold changed to £50000.