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Posted Thu, 14 Nov 2024 21:16:16 GMT by OddSocks
Hi, My friend is a Hungarian national who has settled status in the UK. They have owned a property out there for the last 20 years which was they're home until moving to the UK around 2010 and her dad continued to live there until he passed away recently. The house has now been sold does my friend need to declare this and pay CGT on the increase in the houses value? Thanks in advance
Posted Mon, 18 Nov 2024 21:01:52 GMT by OddSocks
Additionally the property was in a poor state of repair when purchased, replacing the roof, kitchen and bathroom increased the value considerably. Do these elements factor in to the amount of CGT which is due?
Posted Tue, 19 Nov 2024 09:02:39 GMT by HMRC Admin 19 Response
Hi,
Possibly yes, if your friend was the owner of the property since it was acquired.  
Your friend would need to convert all values to GBP steling using an exchange rate in use at the time of acquistion and disposal. If the property was their main residence for a period of time, they can claim Private Residence Relief. There is a tax calculator here:
Tax when you sell property
The disposal must be reported 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 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 theit own choosing. 
Thank you.
Posted Fri, 22 Nov 2024 16:28:08 GMT by HMRC Admin 20 Response
Hi,
Please have a look at the guidance at CG1550 onwards (CG15150 - Expenditure: introduction).  
Usually, repairs to roof, kitchens and bathrooms are considered revenue expenditure and cannot be set agains capital gains.  
Please have a look at PIM2030 (PIM2030 - Deductions: repairs: is it capital?).
Thank you.
Posted Fri, 22 Nov 2024 22:58:48 GMT by OddSocks
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