CGT on Indian property disposal for a UK resident...

by **stevefarrow** on Wed Nov 02, 2011 9:11 pm

I have a friend (soon to also be a client) who has recently inherited a property in India (he was born in India but moved to the UK as a child, so he is UK resident). He plans to sell the property, invest some of the money in India and bring some to the UK, but wonders about the tax implications. My initial thought was that the gain would be subject to CGT in the normal way and any income earned from the investments would be taxable as foreign income (subject to double taxation relief), but is it that simple?

Any thoughts would be appreciated...thanks in advance...

by **maths** on Wed Nov 02, 2011 9:29 pm

Property will be subject to CGT (and Indian CGT possibly; in which case DTR applies).

Income generated on Indian investments subject to UK income tax (and again possibly Indian tax subject to DTR).

Remittance basis may apply but presumably £30,000 RBC would be payable.

by **stevefarrow** on Thu Nov 03, 2011 7:17 pm

Thanks for that - pretty much as I thought - I need some guidance on the possible Indian tax implications though.
I doubt he'll want to elect for the remittance basis as the property is jointly owned and I doubt that his CGT liability and subsequent income will amount to £30,000.
So...any thoughts on the Indian tax situation?