GCT On Sale Of Foreign Property

Hi, I sold a property in Florida in April 2022 (2022/23 tax year). Over the years I owned it, it was let out and made a slight loss each year, which was recorded on my SA returns. The IRS in the US has just paid out the funds it withheld when the sale went through, so I can now pay any GCT necessary in the UK. Firstly, can you confirm that the allowance for 22/23 is £12300 and that this will be used in any calculations (I know it's dropped to £6000 for 23/24, but I think I'm OK with £12300 for 22/23 still), and secondly, as the property ran at a slight loss each year, can I offset that accumalated loss against any CGT now payable? Thanks.

Hi

Yes the Capital Gain allowance for 22/23 was £12300. You cannot use any of the rental losses to reduce your capital gains liability.
If you have no other rental income, these losses are now gone.

Thank you

I purchased my chalet in 2008 in swiss francs,making stage payments before taking possession in December 2008. Re exchange rate CGT is the exchange rate based on date of taking possession or date of stage payments made before owning the property. The currency exchange rate has changed massively over 15 years I know CGT is payable on this. But I have a mortgage to repay in Swiss francs, is this a cost before gains are assessed? In addition I will have to pays selling tax and CGT to be paid in Switzerland Please can you confirm re capital gains on currency exchange Many thanks

Hi Swisschalet,

Mortgage costs are not a factor in calculating capital gains tax, how the property is purchased has no relevance.  
The acquisition price is the price agreed at the time the contracts were signed.  
All parts of the capital gains calculation must be in pounds sterling.  
You can use the official exchange rate that applied on the day of acquisition, this would be found in most national newspapers.  
Alternatively, you can use the official exchange rates at Exchange rates from HMRC in CSV and XML format.  
You will have the choice of using the monthly, annual and spot rate.  
Archived exchange rates can be found at Exchange rates.  
There is a calculator at Tax when you sell property, which will help you work out the gain.  
Any gain will need to be reported in a self assessment tax return.

Thank you."