Overseas property CGT

I purchased a property in Hong Kong on 28/2/2018 (completion date) at a price HKD $14,380,000 with expenses (stamp duty HKD$539,250, legal fee HKD$10,710, commission HKD$80,000) Then I sold it on 23/7/2024 at a price HKD$13,750,000 with expenses (legal fee HKD$11,350) I was not an UK resident at the time of 2018, so I did not actually have a currency exchange at that time. May I use the exchange rates (average year to March 2018 GBPHKD 10.295567) for the buying process and the exchange rates (July 2024 monthly exchange rates GBPHKD 9.9387) for the selling process? In this case the capital gain = ($13,750,000 - $11,350)/9.9387 - ($14,380,000 + $539,250 + $10,710 + $80,000)/10.295567 = - £75 566.3988 (i.e. a capital loss) May I confirm if this calculation is correct and I should report it on my self-assessment tax return for the year 2024/2025? Thank you very much

Hi,

To claim losses on the property disposal you will need to convert all figures from HKD to pounds sterling, using a just and reasonable exchange rate in use at the time of acquistion and disposal. Once all figures including costs are in pounds sterling, you follow the UK rules on calclating Capital Gains Tax.

Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal. For your convenience, there are exchange rates here:

Exchange rates from HMRC in CSV and XML format

and for older rates here:

Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009

You are free to use any of the supplied rates or one of your own choosing.

Thank you.

Thank you so much for the reply For a UK property, the transection should be reported to HMRC within 60 days. May I know if there is a time limit for reporting the transection of a foreign property? Or I should do it next year in the self assessment for Tax year 2024-2025? Thank you

Hi,
Yes, you can wait to include it with your 2024 to 2025 tax return.
Thank you.

Hello, I am an Italian citizen resident in the UK with settled status. I am about to sell my Italian property, which I bought in June 2007, and I need to calculate the Capital Gains Tax. I have a specific question regarding the exchange rate to use in order to convert the 2007 purchase price from EUR to GBP. During the 2007/2008 fiscal year, the EUR-GBP exchange rate fluctuated significantly, and I am not sure which specific exchange rate to use. I have read previous replies where the guidance was "You can apply any of the spot rates for the exchange rates for the tax years in which the property was purchased and sold." Does that mean, for example, that I have the choise to use e.g. the spot rate from 31.12.2007 or 31.02.2007, or any other spot rate from the 2007/2008 fiscal year? Thank you.

Hi,
As this disposal is of a property overseas, it must be declared in a self assessment tax return.  
Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.
For your convenience, there are exchange rates at:-
Exchange rates from HMRC in CSV and XML format
and for older rates at
Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2010.  
You are free to use any of the supplied rates or one of your own choosing.  
You will have to follow the UK rules for capital gains.  
To help with this, you can use the calculator at Tax when you sell property, to work out the gain to report in your tax return.
Thank you.