Time limit for declaring capital gain tax

Hello team I have two questions a) I recently sold a flat in Greece (inherited from my parents) and I am planning to transfer the money to UK to repay part of my mortgage. I am a UK resident for tax purposes and I complete a tax assessment online every year. Do I have to report the capital gains tax immediately to HMRC or during the tax year of the sale? b)I am planning to donate some of the money to my children, in that case, do I have to declare the total amount from the flat sale to HMRC or the amount of money left after the donation? thank you for your time

Hi,

You will need to report the foreign disposal of residential property in your self assessment tax return for the tax year the disposal arises.  

You will need to work out the value of the property in pounds sterling using the official exchange rate for when you inherited it.  

You will also need to do the same for the disposal value, using the official exchange rate at the time of disposal.  All parts of the capital gains calculation must be in pounds sterling.  

To work out your gain, subtract from the disposal value, the inheritance value, your disposal costs and any capital expenses incurred.  

This will give you the gain before your annual exempt allowance can be deducted.  

Your gain should be reported in your tax return on SA108 and SA106, if you are claiming a foreign tax credit for tax paid in Greece.  

The tax figure also needs to be converted to pounds sterling.  The official exchange rates can be found here Exchange rates from HMRC in CSV and XML format.  

The calculator at Tax when you sell your home will help you work out your gain.

Thank you.