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Posted Sun, 24 Mar 2024 23:09:03 GMT by CF W
Hi, I and my wife are just become the UK resident and owned a property oversea. If we will sell the property and pay the Capital Gain Tax if any to HMRC in the nearest future. I would like to know whether the money from selling this property should be needed to tax again or NOT if we remit this money into UK? Thank you.
Posted Wed, 27 Mar 2024 12:29:13 GMT by HMRC Admin 5 Response
Hi 

If you dispose of the overseas property, while you are resident for tax purposes in the UK, you may find that you have capital gains tax to pay on disposing of the property.  
To work out if there is a capital gains, will mean that you need to be able to convert to pounds sterling, your acquisition costs and your disposal value and costs, using a just and reasonable exchange rate in place at that time.  
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
https://webarchive.nationalarchives.gov.uk/ukgwa/20231016190054/
Exchange rates from HMRC in CSV and XML format
and for older rates at
https://webarchive.nationalarchives.gov.uk/ukgwa/20100202113554/
Exchange rates from HMRC in CSV and XML format.
You are free to use any of the supplied rates or one of your own choosing.  You may find that you are also entitled to claim private residence relief, when working out your gain.  
Have a look at HS283 Private Residence Relief (2023).  
There is a calculator at Tax when you sell property, which will help you work out your gain.  
This should be reported on a self assessment tax return.

Thank you
Posted Wed, 27 Mar 2024 13:18:45 GMT by CF W
Dear Officer, Thank you for your reply. As we are not familiar with the tax regulations of the UK, we would like to have your confirmation for the below. After we paid the CGT to the UK, the capital which is obtained from selling the property will be remitted into the UK and DOES NOT need to be tax again. Thank you so much. 

Name removed admin .
Posted Thu, 28 Mar 2024 04:06:32 GMT by Elly
Hello HMRC, we have not immigrated to UK and not UK resident when we purchased our overseas property. We purchased with local currency and later sold with local currency when we have immigrated to UK and become UK resident. So do we still have to report our purchase cost by converting to sterling based on the exchange rate published at the time of purchase? It will make the capital gain unrealistically high due to sterling is very strong at our purchase time and very weak now when we sell the overseas property.
Posted Thu, 28 Mar 2024 16:46:44 GMT by HMRC Admin 25 Response
Hi CF W,
Please refer to:
Paying tax on the remittance basis (Self Assessment helpsheet HS264)
Thank you. 
Posted Thu, 28 Mar 2024 21:03:19 GMT by CF W
Dear Office, I don't quite understand. The money which is used for buying the property is from our saving in many years. We now sell the property and paid the CGT to the UK if there is capital gain. Why this money will become our income and we still needed to pay income tax if remit to the UK? Please help to clarify. Thank you.
Posted Tue, 02 Apr 2024 13:28:21 GMT by HMRC Admin 8 Response
Hi,
Yes.  If you were resident in the UK in the tax year in which you disposed of this property, then you need to report the disposal on a self assessment tax return, for capital gains purposes.  
To work out if there is UK capital gains tax to pay on this disposal, requires that you obtain the acquisition cost and expenses, such as solicitors fees, estate agent fees incurred at the time and convert this to pounds sterling, using a just and reasonable exchange rate for the date you acquired the property.  
You also need to do this with the disposal value and disposal costs.  
You deduct the acquisition cost, expenses and disposal exepenses from the disposal value, to work out the gain.  
If this property was your main residence for part of the ownership period, you may be entitiled to claim private residence relief.  
Have a look at the guidance at:
HS283 Private Residence Relief (2023).  
There is no tax relief available regarding the strength or weakness of exchange rates at different times.
Thank you.
Posted Tue, 02 Apr 2024 13:42:35 GMT by CF W
Dear Officer, Thank you for your reply. Yes, I will report the disposal on the self assessment tax return for capital gains purpose if there is. However, my concern is beside the Capital Gain Tax, whether there is any other tax I need to pay for IF I remit the money which is obtain from selling this property oversea after I paid the CGT to the UK? Thank you.
Posted Wed, 03 Apr 2024 14:57:44 GMT by HMRC Admin 5 Response
Hi CF W

When you dispose of an asset, whether in the UK or overseas, such as a property, for more than you acquired it for, you have made a capital gain.  This gain is taxable.  
The money from the disposal after you have paid capital gains tax in the UK, will not be regarded as income and will not be taxable as income, regardles of whether the money is in the UK or if brought into the UK.

Thank you
Posted Wed, 03 Apr 2024 15:10:38 GMT by CF W
Dear Officer, Thank you for your clarification. Regards,
Posted Tue, 09 Apr 2024 13:40:15 GMT by HMRC Admin 32 Response
Hi,

Capital gains tax would be the only tax on money arising from the disposal of an asset.  

If you were to bring the capital from the disposal to the UK, you would only pay Capital Gains Tax if a gain arises and no other tax on this money.

Thank you.
Posted Thu, 19 Dec 2024 00:19:45 GMT by Alimoa
I bought apartment in my home country but it’s not fully under my name as I am still paying money to the developer and I couldn’t sell it till I finish my full payments, I want to buy new apartment in London am I obligated for first home buyer as it’s my first home in UK and the other apartment still not under my name The contract mentions it’ll be fully my apartment with the last payment
Posted Mon, 30 Dec 2024 11:59:00 GMT by HMRC Admin 32 Response
Hi,
This appears to be in relation to stamp duty and as such you should refer to:
Stamp Duty Land Tax
Thank you.
Posted Sat, 04 Jan 2025 17:13:35 GMT by Ivan
Dear officer, Please help to clarify my case related to the same topic. I'm now a UK resident and sold my house in another country in the 2023-2024 tax year. The price of the house sale in GBP is less than the price I bought this house 7 years back in GBP (due to conversion rate changes). So, in GBP, I don't have any capital gain from this overseas house sale but have a capital loss. I transferred money from this sale to my UK bank accounts in 2023-2024 tax year. Questions in this context: 1) In case I don't want to report this as a Capital Loss now, should I report anything about this house sale and the money I transferred from abroad to the UK in my self-assessment to HMRC for 2023-2024? 2) In case if I want to report it as Capital Loss now in my 2023-2024 self-asessment, which section/form is to be used for this? (I don't have any positive capital gains on 2023-2024 tax year)? Thank you
Posted Fri, 17 Jan 2025 10:02:34 GMT by HMRC Admin 21 Response
Hi Ivan,
As it was your main residence you cannot claim the loss.
Thank you.
Posted Sat, 18 Jan 2025 17:14:45 GMT by Cornelia59 Silson
Hello, we are Swiss residents but are considering moving to the uk. Our house was bought in 2010. If we sell the house in 2025 , and subsequently relocate to the uk in 2026, are we liable for capital gains tax? We will be paying tax in Switzerland with the sake of the house , which will be in the previous fiscal tax year.
Posted Sat, 18 Jan 2025 17:52:00 GMT by Ivan
Thank you. I lived in this house 5 years out of 7 years that I owned it as last two years I lived in UK. Under these circumstances, can I claim the corresponding proportion of the loss (2x12 - 9)/(7x12)? (distracting last 9 month or ownership)
Posted Wed, 05 Feb 2025 14:48:37 GMT by HMRC Admin 20 Response
Hi Cornelia59 Silson,
Please see guidance here:-   Tax when you sell your home Private Residence Relief
Thank you.

 
Posted Thu, 06 Feb 2025 14:25:42 GMT by HMRC Admin 32 Response
Hi Ivan,
You would be able to claim losses for the period that the property was not your main residence.  
You would follow the guidance in helpsheet HS283 and apply the proportions to the loss, to work out the allowable loss.  
HS283 Private Residence Relief (2024)
If you want to claim this loss, you will need to report it in your Self Assessment Tax Return for the tax year in which the disposal ocurred or in writing. In either case, you will need to provide supporting evidence of the loss and how you arrived at your figures.  
You only have 4 year from the end of the tax year that the loss arises, to claim the loss.
Thank you.
 

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