Author Topic: Foreign Tax Credit Relief (FTCR) capital gains  (Read 120 times)

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Offline MoggyMay

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Foreign Tax Credit Relief (FTCR) capital gains
« on: May 09, 2018, 02:06:25 PM »
Foreign Tax Credit Relief (FTCR) can be claimed if an individual has paid foreign tax on a source of income which is also chargeable to UK tax. You must be living (resident) in the UK, Isle of Man or Channel Islands if you want to claim Foreign Tax Credit Relief.

You can claim the lower of

the amount of foreign tax paid, or allowed by treaty (DTA - Double Taxation Agreement)

OR

the amount of the UK tax chargeable on that item of income

If I sell share of inherited house in the USA to sister the gain will be around 50,000 dollars.  If I am classed a UK resident, this will go on the 2018/19 tax year as it will happen soon. What is the rate of tax for that?

If I sell the house and stay in the USA and meet the statuatory residency test and am NON resident in the UK, I will pay on my 2018 return in the USA and dont report it to UK.

What happens if I move back halfway through the year!?


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