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Where Taxpayers and Advisers Meet

Capital Tax Gain

UKNRI
Posts:2
Joined:Sun Nov 07, 2021 9:25 pm
Capital Tax Gain

Postby UKNRI » Sun Nov 07, 2021 9:32 pm

HI

I am planning to sell a property in India and got few questions regarding Capital Tax gain.

When I will sell, an accountant in India will check capital tax gain in India and settle tax as required. What I want to understand is how this needs to be declared in UK?

Do we need to calculate capital tax gain calculation again as UK rules (as the calculation in UK & India are different) or just use figures from India tax return and declare that in UK tax?

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Capital Tax Gain

Postby pawncob » Mon Nov 08, 2021 1:52 pm

You need to submit a UK return declaring the gain. You'll receive a credit against the UK tax due for the tax paid in India.
https://www.gov.uk/government/publications/india-tax-treaties
With a pinch of salt take what I say, but don't exceed your RDA

UKNRI
Posts:2
Joined:Sun Nov 07, 2021 9:25 pm

Re: Capital Tax Gain

Postby UKNRI » Mon Nov 08, 2021 2:13 pm

You need to submit a UK return declaring the gain. You'll receive a credit against the UK tax due for the tax paid in India.
https://www.gov.uk/government/publications/india-tax-treaties
My question is how to calculate the gain? Calculation of gain is different in UK and India. Also, in India there are options to invest the gain in some funds to reduce the tax liability.

So I want to understand which calculation to use. If I use different calculations for both countries

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Capital Tax Gain

Postby pawncob » Mon Nov 08, 2021 3:02 pm

https://www.gov.uk/tax-sell-property/work-out-your-gain
With a pinch of salt take what I say, but don't exceed your RDA


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