230. Dual taxation on property

sold in India - limit on

repatriation of sale proceeds

Q: Dear Mr. Chand Since I found your site I have been visiting it almost everyday .It covers so many issues which are common to all of us. Money issues are the most important to us spiritual Indians My good wishes to you for this resource. My wife also finds this useful My question is that In case of property bought in India with non foreign funds after having moved to UK When I want to sell this commercial property and bring the money to UK to buy a house to live in -Do I pay tax in India or UK? Second question is that in case I inherit property from my parents and bring the money back to UK -Is there a limit? Many Thanks amit A. When you sell your property in India while living in UK, you would be liable to pay capital gains tax in India as well as in UK. Since India and UK have a double taxation agreement, you would be able to offset your UK capital gains tax liability by the amount you have already paid as capital gains tax in India. This may reduce or even negate your capital gains tax liability in UK depending on the tax rates of the two countries at the time of the sale transaction. In UK for the year 2010, I believe the first £10,100 of your profit from selling your home abroad is tax-free. Regards to your second question, the limit is one million USD per year.