Overseas capital loss

Hi Admin, In 2013, I and my partner bought a property in Hong Kong. The purchase price was £800,000. Each of us held a 50 per cent share in this property from 2013 to 2018. In 2019, I acquired my partner's 50 per cent share of the property at the market price £1,300,000. I have arranged a solicitor for this transaction and paid a stamp duty land tax of £40,000. The property was solely owned by me since then. I and my partner lived in this property from 2013 to 2021. In Oct 2021, we moved to the UK. In Feb 2023, I sold the property at a price £1,100,000 on the market. Should I report this transaction a loss in my tax return? Thank you!

Hi Iris Look,
Yes so that it can be carried forward, when you bought out your partner in 2019.
It is only the additional 50% that is your cost price here and not the full £1300,000.
Thank you. 


 

Hi Admin 25, Thank you for your reply. As there is a capital gain for the 50% owned by myself from 2013 to 2023, should I use the different of the 50% gain and 50% loss to calculate the capital gain tax I should pay in the self assessment system? Have a lovely day!

Hi Iris Look,
Add together the aquisition costs
1 - 50% of the acquisition cost in 2013 and
2 - 50% of the acquisition cost in 2019.  
Deduct this total including your costs such as stamp duty, solicitors fees etc.  
If you are left with a positive figure, this is the amount of gain and if a negative figure, the loss.  
In addition to this, you also have private residence relief that you can set against the gain.
 HS283 Private Residence Relief (2023)
Thank you.