Capital gain about an overseas property sold at the end of Apr 2023

Hi, My overseas property (in Asia) sold in Apr 2023, I have the following questions: 1) I bought property in 2009, when I calculated the capital gain, I first need to converted the currency to GBP, right? I search online HMRC exchange rates page which however does not have 2009 currency exchange rate. Could you please advise this information? 2) My understanding, as the property I sold is not a UK property, and the contract exchange (completion date) took place on 28 Apr 2023, so I can leave this capital gain tax in 2023-2024 self assessment tax return, is it correct? 3) My husband and I owned this property for a period of 163 months, it was our main/only home and we had lived in it until 16 months before we sold this property, taking the 9 months relief into account, my private residence relief is (163-(16-9))/163=about 95.7%, is it correct? Thank you very much!

Hi Beverly,

Archived exchange rates can be found at Exchange rates.  
As the disposal took place at the end of April 2023, this is the 2023 to 2024 tax year, any gains that you need to declare, will be in the 23/24 tax return, in the SA106 (foreign) and SA108 (capital gains) pages, which will become available after 5 April 2024.  
Private residence relief is calculated as the number of months the property was your main residence, plus an extra 9 months over the number of months you owned the property. (147+9)/163 times the gain.  The resulting figures from this calculation are deducted from the gain.  As the property is jointly owned, you will only declare your 50% share of the property.

Thank you.

Thank you very much for your reply. Can I just fill in the SA100? Not SA106 (foreign) and SA108 (capital gains)?

Hi Beverly,

No you need the additional pages for declaring the capital gain and claiming foreign tax credit relief.

Thank you.

Thank you again! Then I have another question. Actually I have bank interest over GBP1000 in the last tax year, some of the interest cames from overseas bank. Do I also need to fill in the SA106 (foreign)? And as interest is not capital gain, SA108 is thus not needed, right?

Hi,

As long as your overseas interest was not taxed, and is below £2000, then you can declare it in pounds sterling in box 3 of SA100.  

If tax was deducted and you want to claim a foreign tax credit, it will need to be declared in SA106.

Tax Return (2023)

Thank you.
 

Regarding MHRC Admin20 mentioned above "Private residence relief is calculated as the number of months the property was your main residence, plus an extra 9 months over the number of months you owned the property. (147+9)/163 times the gain. " Thanks for confiming this. However, I am very confusing which form (SA106? SA108?) and where in the form can I claim this private residence reielf? Should I include computation of the private residence relief with the form? Thanks!

Hi,

The Private Residence Relief would form part of your calculation and there is not a box to show the amount claimed. You need to complete the SA108 and state you are claiming exemption at box 8.  

Your gain that you report at box 6 should reflect this. The SA106 is only required if you have paid Capial Gains Tax abroad. You can see guidance here:

Capital Gains Summary notes

Thank you.

If my property: Bought in September/2009 at GBP300000 Sold in April/2023 at GBP600000 Sold and bought price difference = GBP300000 This is my main property from July/2010 to Dec/2021, number of months living in this property + 9 months ownership = 147 + 9 = 156, total number of months owning the property = 163, so the private resident relief = 156/163 = 95.71% My husband and I were joint owners, we had 50% ownership individually. Capital gain for my husband and I individually (after deducting private resident relief) = 300000/2 x (100-95.71)% = GBP6435 Taxable capital gain for my husband and I individually (after deducting the capital gain allowance GBP6000 in 2023/24) = 6435 - 6000 = GBP435 Is the above calcuation correct? Thank you!

Hi,

No, the calculation does not appear correct. It looks like you have added on the additional 9 months again as you lived in it for 138 months based on what you have said. Total Private Residence Relief is only 147 months rather than 156.

Thank you.