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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5115
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

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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.

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

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

I hope this is helpful and answers your question.

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