Selling property in India and bringing proceeds to UK

Hello, I wanted to ask if I sell my property in India, pay the taxes there and then transfer the proceeds to the UK by bank transfer, are there any additional taxes to pay? If yes then what kind of tax I would need to pay and how to claim tax relief? will the UK India DTAA help? Regards

Hi guynextdoor Smith,
You will need to work out if there is a Capital Gains Tax liability arising in the UK.  
You will need to convert your acquisition costs to pounds sterling, using the exchange rate in operation at the time you acquired the property.
You will also need to do the same with the disposal costs, using the exchange rate in operation at the time you disposed of the property.
If the difference results in a gain, then you will need to declare the disposal of the Indian property on a Self Assessment Tax return.
The official exchange rates can be found here:
Exchange rates from HMRC in CSV and XML format
Exchange rates 
If your Indian home was your main residence, then you may be able claim private residence relief (PRR).
Guidance on PRR and a calculator can be found here:
Tax when you sell your home
Thank you. 

I am a UK citizen and am selling residential property in India. I will need to pay a significant capital gains tax. I will have to pay 20% capital gains tax in India. I have also calculated the CGT amount to pay here in the UK (at 28% using the CGT calculator on the gov.uk site). UK CGT is greater than the India CGT amount in my case. I will be given foriegn tax credit relief by HMRC for the CGT amount paid to Indian tax authority. Indian tax authority offers CGT exemption if I invest the capital gains amount in a government specified govt. bond for 5 years. If I invest in these India govt. bonds, will HMRC still offer me the capital gains tax credit for the amount that was due to the Indian government?

Hi,

No, as you have not paid any Capital Gains Tax overseas.

Thank you.

Hello, I have just sold my father's flat in India (inheritance after his passing) I am going to pay Capital Gains Tax in India and I also have been gifted some moeny from my mother and need to transfer the entire amount to the UK - Do i have any tax to pay in the UK? How do I calculate this please? I am so confused as I thought I only had to pay tax in one country.

Hi,

The gain also needs to be reported to the UK, converted to sterling.

You can claim Foreign Tax Credit Relief for the Indian tax paid up to the maximum of UK tax that would be due.

There is no  Income Tax due on the cash gift from your mother.

Thank you.

hi I have sold property in India and do not intend to bring money in UK. Capital Gain tax paid in India. Do I still need to pay any tax here in UK?

Hi,
You may have Capital Gains Tax to pay in the UK. You will need to work out if there is a gain, using the UK rules for calculating capital gains.
The acquistion and disposal costs need to be converted to UK pounds sterling, using a just and reasonable exchange rate. Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.  
For your convenience, there are exchange rates at:
National Archives: Exchange rates from HMRC in CSV and XML format
and for older rates at
National Archives: Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009
You are free to use any of the supplied rates or one of your own choosing.  
There is a calculator below, to help you work out if there is a gain.  
Tax when you sell property
You are required to report the disposal of the foreign property on a Self Assessment tax return, even if there is no tax to pay.  
If there is tax to pay, you can claim a foreign tax credit of up to 100% of the Indian tax paid.
Thank you.