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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My parents who lived in Canada gifted me their house in June

Resolved Question:

My parents who lived in Canada gifted me their house in June 2011. I sold the house in May 2013. I have paid Canadian tax on the gain, which has been agreed as the difference between the value at June 2011 as supported by selling prices of similar properties at that time and the net proceeds of sale.

What is my UK capital gains tax tax position on this? I am a UK taxpayer.

Thanks for your assistance.

XXXXX XXXXX
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

You will have to translate the gain you made into Pounds Sterling using the CAN$/GBP exchange rate prevailing on the date of sale and report this on your UK tax return - supplementary pages SA108.

You can download SA108 here

http://www.hmrc.gov.uk/forms/sa108.pdf


You would claim gains annual exemption on it and the balance would be chargeable to CGT at 18%, 28% or a combination of both depending on your total income in the tax year.

Having said that, you would claim foreign tax credit relief for Canadain tax paid on the gain against the UK CGT.

You would complete supplementary pages SA106 - Foreign and show foreign tax paid on page F6.

You can view/download SA106 here
http://www.hmrc.gov.uk/forms/sa106.pdf


I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.




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Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.