Did you dispose of a Foreign Asset and pay CGT on the proceeds?
Published: 1/6/2010
News from Rickaby and Co Accountants, Berkhamsted
There has been a change to the rules on Foreign Tax Credit Relief, which may enable taxpayers to reclaim the full amount of UK Capital Gains Tax paid on disposals of foreign assets on which they also paid foreign tax.
Do you fall into either of the following categories?
1) A person or Trust who had a UK CGT liability on the sale of a foreign asset after the 6th April 2004 which resulted in a UK CGT liability.
2) A company who disposed of a foreign asset in an accounting period ending after 18th March 2004 which resulted in a UK CGT liability.
If so, the tax position should be checked, as HMRC have amended their view to allow the whole of the foreign tax to be allowed as Foreign Tax Credit Relief, up to the amount of the UK tax on the gain.
The full Revenue brief can be found here: http://www.hmrc.gov.uk/briefs/cgt/brief1710.htm
We have just completed an application for a £48,000 refund for one client, and would like to be able to submit some more!
Call Sally now to discuss whether you should make a claim for repayment as the closing date for initial applications is 30th June 2010.
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