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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16712
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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`I would like to know if retention of 3% paid on the sale of

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`I would like to know if retention of 3% paid on the sale of a Spanish property can be set against the Capital gains tax due on the self assessment return , does it go in the Foreign Tax Credit section
JA: What are the assets or property for this capital gain?
Customer: A residential property which was rented out now sold
JA: Anything else you want the Accountant to know before I connect you?
Customer: No I don't think so

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Customer: replied 7 months ago.
Thank you

You can claim it back if you have no outstanding tax debts including Spanish CGT on the gain made on the property disposal. Usually, the 3% becomes part of the Spanish CGT liability which can be deducted from any UK CGT liability on the same gain. Take a look here and here for more information.

I hope this helps but let me know if you have any further questions.

Customer: replied 7 months ago.
Thank you would the amount paid in spain be entered in the foreign tax credit relief section on the foreign section of the self assessment form ?

Ye, it does. You need to complete boxes 37, 38 and 39 on page F6 of the SA106 Foreign oages.

Customer: replied 7 months ago.
Thats great Thanks

Would you mind rating my answer before you leave the site please.

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