Capital Gains Tax on Sale of Overseas Property

Dear HMRC Admin, I have a few specific questions with respect to the capital gains tax on the sale of overseas property and will be grateful for the clarification (details below). As an Indian resident, I bought a flat in Mumbai in an under-construction development during July 2009. The possession was granted in June 2010 and I lived in the property as my primary (and only) residence until April 2015, when as a part an intra-company job transfer, I relocated to London. During this entire period of ownership, this remained the only residential property owned by me. The property was subsequently sold during September 2022. a) I understand that there will be no capital gains tax due for the period of time that I lived in the property as my primary residence plus the final 9 months of ownership. However, any period outside of that will be subject to CGT. Appreciate if you can please confirm. b) Any CGT liability that might exist on account of the sale of overseas property will need to paid at the time of next self-assessment (prior to Jan 2024 in this case). Appreciate if you can please confirm. c) With respect to the FX rate used for the conversion, given the purchase payment were over several tranches, should the FX conversion be done for each individual payments, or should one consolidated FX rate be used for the purchase (at the date of purchase) and one for the sale (at the date of the sale).

Hi saurabh chugh,
A. Yes you will be due private residence relief for the period you lived in it.
B. As sold in the 22/23 tax year, it needs to be reported in that years ta return and the due date for the return and any liability is 31/1/24
C. If the purchase payments were all in the same tax year, you can use any of the export rates within that year. for the sale it will be the date of the sale.
Details of exhange rates are here:
Exchange rates from HMRC in CSV and XML format
Thank you. 

Thank you for the response which is very clear. Regarding point c), the payments were made between 24/07/2009 and 02/06/2010, hence across 2 tax years. Is it appropriate to use all the FX as of the last payment date i.e. as of 02/06/2010 or another method is appropriate? Separately the link shared seems to have an issue as the information is withdrawn for the FX rates. Thank you for your guidance!

Hi,
As it covers 2 different tax years, you will need to use rates within the relevant tax year for each payment. for older exchange rates,
please refer to: Exchange rates
Thank you.

Thank you, this is very helpful. One last question. Regarding the sale proceeds, as these were received over a series of payments from July- September 2022, what is the appropriate exchange rate that needs to be used? Is it the spot rate for the respective payments for at the particular dates (note daily spot rate for 2022 doesn't seem to be available on the website). Alternatively the monthly average rate needs to be used for the respective payments or whether the spot rate on the date of the sale needs to be used for the entire proceeds. Similarly for the tax paid in India, what exactly is the rate that should be used to claim the double taxation benefit/ deduction for tax paid in India i.e spot rates for the respective tax payments or the monthly average for the particular month or whether any rate during the tax year can be used. Thank you.

Hi,

You can use any of the rates specified within the tax year 6 April 2022 to 5 April 2023 for both payments received and tax deducted.

Thank you.