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Where Taxpayers and Advisers Meet

Tax on compensation - foreign property

Pushp
Posts:6
Joined:Fri Jul 21, 2017 10:16 pm
Tax on compensation - foreign property

Postby Pushp » Fri Jul 21, 2017 10:29 pm

Dear Advisors,

I have a pretty interesting case and need some guidance

2015: Invested money to buy a property abroad
2016: Property not developed by Developer
2017: Developer refunds capital with a compensation for opportunity lost

Questions:
1. Is compensation considered Capital gains or Foreign Income
2. Is taxable amount calculated in £ terms
3. Tax was paid on the compensation in country of origin
3. Will UK self assessment require additional pages for both Capital gains (tax on compensation) and Foreign income (relief on tax paid)

Please advice.

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