Money from selling property oversea

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.

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

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 .

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.

Hi CF W,
Please refer to:
Paying tax on the remittance basis (Self Assessment helpsheet HS264)
Thank you. 

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.

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.

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.

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

Dear Officer, Thank you for your clarification. Regards,

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.