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How to account for the proceeds of sale arising from a inherited property abroad?

cmani1cmani1 Registered Posts: 2
in Personal Tax
The property (never rented out) was sold after 3-4 years of inheritance. The person paid 18% cgt in the country. British citizen paying tax in UK and does self assessment every year. Are they liable for paying income tax in the
UK? What is the computation? HELP...

Answers

  • Lewisham_lassLewisham_lass Registered Posts: 45
    edited June 2020
    Hi, I think this should be covered under the double tax agreement with the country the property was sold in. You will need to check the specific arrangements the country has with the UK on this though.
  • Lewisham_lassLewisham_lass Registered Posts: 45
    See the government advice on it here: https://www.gov.uk/tax-foreign-income/taxed-twice
  • cmani1cmani1 Registered Posts: 2
    Hi Lewisham_lass, Thanks for your reply. The country with double tax agreement is India. As mention initially, the sale was taxed at 18%. The proceeds were repatriated to the UK. In the current year, Foreign income will be declared. My question is should the tax at 20% be calculated or the difference (20-18) and paid to HMRC?
    Regards
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