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Posted Tue, 16 Nov 2021 05:02:13 GMT by jenny cheuk
I am from Hong Kong and plan to land UK in year 2022Q2 under BNO 5+1 policy Australia residential property, mortgaged, solely owned by me 2015 off the plan @AUD 480K, now A$400K Buy-to-let purpose Q1: is the CGT calculation based on GBP? (if calculated in AUD, it is depreciated) If yes, how to source the exchange rate of GBP? Is it based on the date of purchase agreement? Q2: any tax would be generated if I dispose of it within 9 months of arrival? Thank you
Posted Tue, 16 Nov 2021 09:40:32 GMT by HMRC Admin 17

Hi,
 
Any capital gains tax is based on the Sterling equivalent of each value.

You can either use the monthly exchange rate at the time or the annual for the year :

Exchange rates from HMRC in CSV and XML format   .

If this was your main and only residence, then you would only be subject to capital gains tax if this was not sold within 9 months of leaving the property.

This is known as private residence relief.

Further guidance can be found here :

Private Residence Relief (Self Assessment helpsheet HS283)   and :

Capital Gains Manual  .

Thank you.

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