Overseas property sales: Remittance, Proof of capital amount, Separation of capital and gain.

To make it easier to understand the question, I make an example: Background: Mr. A and Mrs. A became tax residents in 2021. Mrs. A (wife) purchased an overseas (buy-to-let) residential property in 2019 for £300,000. In 2020, Mrs. A sold the property to Mr. A (her husband), for £400,000. Mr.A kept it letting out. In 2023, Mr. A sold the property for £500,000. The buyer's solicitor made two payments: an initial deposit of 10% (£50,000) and the remaining 90% (£495,000). The total amount was £500,000. The buyer’s solicitor deposited these two payments into Mr. A's overseas bank account, which is a clean account with no other funds and no added interest. During the transaction (Mr. A sold the property to the buyer), assuming the cost of stamp duty and solicitor fees was £40,000. That was: Selling price: £500,000 Capital: £300,000 Solicitor and Stamp duty: £40,000 Gain: £500,000 - £300,000 - £40,000 = £160,000 Due to the transaction system for overseas property sales, the buyer's solicitor does not separate the capital and profit when depositing funds into the seller's account. The buyer’s solicitor deposits the deposit (10%) and the balance (90%) into Mr.A’s account. Questions: Q1. - Do both Mr. A and Mrs.A need to use the remittance basis? - Since the property was initially purchased by Mrs. A in 2019 and then sold to Mr. A in 2020. In 2023, Mr. A intends to use the remittance basis to keep the profit (£160,000) from the sale of this property offshore, making it exempt from CGT (Capital Gains Tax). Does both Mr. A and Mrs. A need to use the remittance basis together for CGT exemption, or can it be solely Mr. A's decision without affecting Mrs. A? Q2. - How to clearly inform HMRC about the breakdown? - After the transaction, Mr. A received the full amount of £500,000 in his overseas bank account (with no interest and a zero balance). He plans to remit the capital and allowable expenses (£300,000 + £40,000) to the UK CGT tax-free, while keeping the profit (£160,000) offshore without tax. Which form should Mr. A use to clearly inform HMRC about the breakdown of the selling price (£500,000) into capital, expenses, and profit? Q3. - Proof of capital amount? - Can Mr. A use the Completion Statement issued by the solicitor to Mrs. A in 2019, which shows the initial and mortgage amounts for the property, as proof of Mrs. A's capital amount (£300,000) at that time? Any else document is needed? Q4. - Should Mr.A wait for HMRC's response? - Should Mr. A wait for HMRC's response and approval before remitting the tax-free amount of £300,000 + £40,000 (capital + allowable expenses) to the UK, or can he remit the funds first and report to HMRC within the tax year? Q5. - Time limit? - Is there a time limit for the separation of capital and gain and reporting? Q6. - Is it not a Mixed Fund? - Would a bank account that does not generate interest, and only holds funds from a single property transaction, including the capital and the profit of the property, not be considered a Mixed Fund?

Hi,
As the property is solely in the name of Mr A, there is no effect on Mrs A and it will only be Mr A that uses the remittance basis for the CGT.  
Mr A can include a breakdown of what he done regarding the capital/gain side of this when he is completing the tax return. He doesnt wait for HMRC approvla as the onus is on him on what he is remitting  to then declare this to HMRC on his return.
The time limit is the due date for the tax return for the year in which the income is remitted.
Finally, as the account is only for the proprty, it is not a mixed fund.
Thank you.