Capital Gain Tax on Overesesa Property

Hi HMRC, My wife and I arrived UK on 31 Jul 2022 with BNO visa. We owned a residential property in Hong Kong, which was our only home before moved to UK. We sold the property with transaction completed on 13 Sep 2022. Through the HMRC online test, we are entitled for full Private Residence Relief. May I ask, 1. is this test applied to overseas property? 2, do we have to file the capital gain in the Self-assessment? Best Regards

Hi
Yes.  
The method for calculating capital gains tax applied equally to foreign property as it does to UK.  
As the private residence relief covers any gain, there is no tax to pay.  
As you were resident in the UK at the time the property was disposed of, you will need to declare the disposal on a self assessment tax return.  
In SA108, you will need to claim 'PRR' in box 8 to declare private residence relief.

Hi HMRC, Thank you for the reply. I refer to the Capital Gain Tax Summary Notes for 2022-23, Page CGN1, [You do not need to fill in the ‘Capital Gains Tax summary’ pages if you only sell or dispose of: ..... your main home, if you qualify for Private Residence Relief on the full amount of the gain] Does it mean no need to declare in the self-assessment? If I need to declare in the SA108, as the property is equally owned by my wife and myself, should I fill in 50% of the cost and selling value of the property? Best Regards

Hi
If private residence relief covers the full gain, then there is no requirement to declare it on a self assessment tax return, by you or your wife.