CGT on foreign property

LeoC

Hello All

I am originally from Brazil but have been living in the UK since 1999, so I pay taxes here and all. I am a resident, domiciled and ordinarily domiciled in the UK.

I recently sold a property I had back home in Brazil, and I am due to pay CGT on the transaction. The Brazilian government already took its own CGT at the source, but the UK one is higher, so I am still liable to pay over here.

My question is: even though Brazil doesnt appear to have any double taxation agreements with the UK, can I claim the tax paid over there?

If I understand the rules correctly, I can claim unilateral foreign tax credit relief?

And which sort of documents do I need to keep? The Brazilian government doesn't provide any particular kind of receipt, all I have is the paying slip stamped by the bank over there, it doesn't say much.

Thanks

Leo

pjclar02

Hello Leo

Yes - you can claim foreign tax credit relief against the tax paid in Brazil.

You don't really need any documents as such - just a bank statement to prove that the tax was paid in Brazil in case it is ever questioned.

Hope this helps.

LeoC

Thanks for the prompt reply. Well, I only transferred the net amount to the UK, so maybe that's proof enough? (because the remainder I used to pay the tax in Brazil!).

But I'll definitely find that bank statement as well. Thanks for clarifying.

Cook_County

It would be remarkable that anyone who has lived in the UK since 1999 could already have acquired a domicile of choice within the United Kingdom.

Assuming this is correct, one reports gains on an arising basis converting into Sterling at dates of acquisition and sale and claimd DTR on any doubly taxed gain.