Captial Gain Tax for main resident house in overseas

Hi all, Would you advise if I need to report capital gain tax for my recent sale of previous resident home in Hong Kong? 1. In Jun 2014, my husband and I bought a resident home (in joint name)in Hong Kong at around GBP290K and we lived in the property until Oct 2021. 2. In Oct 2020, the property had been remortgaged with value around GBP440K and changed to under my name only. 3. The property was rented out from Nov 2021 to Oct 2023. 4. My husband and I relocated to the UK in Dec 2021 and I was full-time employed with higher tax payer, we both became UK tax resident after 183 days which was around Jun 2022. 4. The property was sold at around GBP310K at the end of Dec 2023 Questions: a. Do I need to declare any Captial Gain Tax for my recent sale of the property? If yes, only myself need to report CGT or my husband needs to report CGT too? b. If yes, how much CGT do I need to declare? GBP310K(property price sold in Dec 2023) - GBP290K (property purchased price in Jun 2014) = GBP20K? c. Any Private Resident Relief can I claim because the Hong Kong property was our main resident home before relocating to the UK? If yes, shall I claim from Jun 2014 to Oct 2021? d. How I declare the CGT and when is the deadline? In 2023/2024 self-assessment or other platform? Thank you.

Hi,
As the property has not been your only and main residence for the whole period of onwership, it is possible that capital gains will be due.
Please refer to:
Private Residence Relief (Self Assessment helpsheet HS283 for private residence relief
Any gain needs to be reported by 31/01/25
Thank you.

Apologies as I still don’t understand. Would you please advise the followings? Thanks a lot. a.If Captial Gain Tax is required, only myself need to report CGT or my husband needs to report CGT too? And how much CGT do I need to declare? GBP310K(property price sold in Dec 2023) - GBP290K (property purchased price in Jun 2014) = GBP20K? Or else? b. Any Private Resident Relief can I claim because the Hong Kong property was our main resident home before relocating to the UK? If yes, shall I claim from Jun 2014 to Oct 2021? Since I owned the property for 114 months and lived there for 88 months (rented out for 24 months and vacant for 2 months). Can I claim Private Residence Relief for 88 months + 9 months which is 97 months?

Hi Goodsummer123,
We cannot comment on scenarios or calculations.
If the property was your main residence, you are able to claim Private Residence Relief for the number of months the property was your main residence, plus a further 9 months over the total number of month that you owned the property.
If the property was jointly owned between your husband and yourself, you will both need to work out if there is a capital gain on each of your 50% shares.
Please  have a look at the guidance on Private Residence Relief.
HS283 Private Residence Relief (2023).
The capital gains calculation must be in pounds sterling at every stage of the calculation.
You will need to use a just and reasonable exchange rate, in use at the time of the acquisition and again at the time of disposal.
For your convenience, you can use any of the rates here:
Exchange rates from HMRC in CSV and XML format
Or one of your own choosing, such as an international stock exchange rates.
The calculator here:
Work out your gain
Which will help you work out the gain.
The gain should be reported in a Self Assessment tax return individually by you and by you husband.
Thank you. 

Thanks for your reply. Regarding this reply: "If the property was jointly owned between your husband and yourself, you will both need to work out if there is a capital gain on each of your 50% shares." Questions: But the property was bought jointly (in Jun 2014) before I moved to the UK on Dec 2021. In addition, the property was being remortgage and changed from joint name to myself on Oct 2020 only before I moved to the UK. Since I bought the 50% share from my husband on Oct 2020 before moving to the UK, does it mean the only myself is entitled for CGT when it's sold on Dec 2023? Thank you.

Hi,

As the owner of 100% of the property at the time it is sold, only you are liable to Capital Gains Tax. Both you and your husband were resident in Hong Kong at the time of the sale, so any capital gains for him, will be charged in Hong Kong.

At the time the property was disposed of, you owned 100% of the property and were resident in the UK. This means that you are also subject to Capital Gains Tax in the UK, as well as any capital gains taxes paid in Hong Kong.  

To work out your acquisition cost requires you to find out what 50% of the acquisition costs were for you in 2014, in pounds sterling. You also need to work out the market value of the 50% you acquired from your husband. Add these both together to obtain you acquisition cost, inlcuding legal fees and so on.

Mortgages and re-mortgages have no bearing when calculating Capial Gains Tax, as these are just a means used to own an asset.

You can see guidance on Private Residence Relief and the capital gains calculator here:

HS283 Private Residence Relief (2023)

Tax when you sell your home

Disposal of overseas assets should be declared on a Self Assessment tax return.

Thank you.

After considering Private Residency Relief (97 months), the taxable amount is calculated by 17 months only which is around GBP14,000. Shall I use the taxable amount of 17 months and deduct the cost of 1. Estate agent fee when buying and selling; 2. Stamp Duty when acquired the property; 3. Solicitor fee when buying and selling the property? If I deducted all above costs, there is no capital gain and even a loss. Do I still need to report to HMRC? Thanks!

Hi Goodsummer123,
Your disposal value is reduced by your acquistion costs and disposal costs such as soliciors fees, estate agent fees, auctioneer fees, stamp duty, to arrive at the capital gain.
Only then can you apply your private residence relief (97/xxx) against the gain to work out how much the gain can be reduced by private residence relief.
The remaining gain can then have losses carried forward applied, before the annual exempt allowance.
Thank you.