Sell the oversea property but finally failed completion

My family moved to UK in Sep2021 via BNO Visa. I owned the property in HK which I have been living there with other family members in Hong Kong before moved to UK. In Feb 2023, we decided to sell this residential property in Hong Kong. We signed Provisional Agreement for sale and Purchase in Feb 2023 and received 10％deposit of purchase price, it around £70000. The agreed completion date of is 15Aug2023 however the buyer fail to pay the balance of purchase price at the agreed date so that the sale and purchase transaction finally was cancelled. The above mentioned paid deposit of purchase price was forfeited by our side. End up, our other family member in Hong Kong are still living there now and decided that will NOT sell this property out at this moment. May I know how should I do for any tax implications and do I need to fill in the Self Assessment in this case? thank you for your assistance.

Hi chichimon333,
If the deposit of £70000 was repaid to the prospective buyer there are no tax implications, and there is nothing to report to HMRC.
Thank you, 

Hi, In my case, the deposit of £70000 was forfeited by our side due to the buyer failed to pay the balance of purchase price at agreed date, therefore the sale and purchase transaction was cancelled finally. Please advise any tax implication, thanks.

In my case, the deposit of £70000 was forfeited by our side and wasn’t repaid to prospective buyer due to the buyer failed to pay the balance of purchase price at agreed date, therefore the sale and purchase transaction was cancelled finally. Please advise any tax implication, thanks.

Hi,

Please refer customer to CG12390 & CG12340 which apply in this case. 

CG12390 - Options: forfeited deposit of purchase money

CG12340 - Options: abandonment of an option

Thank you.
 

After reviewed, I am not quite sure if I still need to fill it in my self Assessment in 2022/2023 as per above mentioned case. if yes, which part should I fill? And, is it still classified in capital gains? If yes, my total annual income less than £12570 (except this forfeited amount in £70000), how many percent tax should I pay (18% or 28%), thank you.

Hi
If the forefeited amount was refunded, there is no gain to report.