michael Jerom

I am planning to sell my property at overseas (India) which worth around £30,000. I want to know the tax implications in UK. 1) If I reinvest in it in overseas do I have to show this on next tax return. 2) Overseas country has strict capital gain rules and if i pay capital gain down there, do i still have to pay capital gain down here. I am asking second question because, i do have overseas saving account for which interest received is taxed @33% at origin country for NRO Account Investment, but i still have to file return here in UK. But it is been told that i do not have to pay tax again here in UK. What really happened last year is that when i filed the return it came differently even though there is double tax avoidance deal. I shall explain as example. I have deposited £100 and got interest of £7 annually. They paid me £4.662(After Deducting 33% (£2.338)Tax). When i filed tax return here in UK, in the calculation I got exception on £2.338 which paid at overseas, but had to pay tax on the £4.662 received. That mean i paid here in UK 20% of £4.662 =£0.9325. So total tax paid for interest of £7 in combined both countries is £2.338 (Overseas) + £0.9325 (UK) =£3.2704 Which is equal to £3.2704/£7 = 46.72%. I just want to know the same problem would be raised in the case of capital gain tax as well.