Reporting CGT on Overseas Property sale

Hi I am a UK resident and recently sold a property in Florida. My understanding is: 1. I do not have to report or pay the CGT within 60 days as it is not a UK property sale and 2. I report on my self-assessment tax return for the year 2022/23 and pay the tax according to that. Are my understandings correct? Many thanks for your help.

Hi,
 

Yes you are correct . Thank you.

Hi, 1) Which page/link should be used to report CGT for the first time reporting for a property sold abroad please? 2) What is the deadline to report CGT for an abroad property sale happened in March 2023? Many thanks

Hi ogmir,
You can report using:
Report and pay your Capital Gains Tax
If you want to submit a tax return instead, you have until 31 January 2024 to file the return and pay any tax due.
 

Hi, Thank you for your response. Could you please let me know when is the deadline to report for an abroad property sale happened in March 2023 using the link of Report and pay your Capital Gains Tax, not by tax return? (https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-have-other-capital-gains-to-report) Many thanks

Hi ogmir,
March 2023, is in the 22/23 tax year.
Any foreign income or capital gains must be declared in a Self Assessment Tax return.
To avoid late filing penalties and interest charges, a paper tax return must be in HMRC possession, no later than 31 October 2023.
A tax return submitted online, has up to 31 January 2024.
In both cases, payment of the tax must be made by 31 January 2024, to avoid late payment penalties and interest charges.    
Thank you. 

Hi I am going to sell a property in HK in coming october. should i need to report or pay the CGT within 60 days as it is not a UK property or report on my self-assessment tax return for the year 2023/24? Many thanks for your help.

Hi,

No, the 60 day rule is for UK residential property only. Other gains can be in your tax return for 2023 to 2024.

Thank you.

Which section of the self-assessment form should the sale be entered on? Is it the Foreign section? Or the Capital Gains section?

Hi Noone,

If you have paid foreign Capital Gains tax it will be on both, if filling online, tick yes to claim foreign tax credit relief on capital gains. if not, its just on the capital gains page.

Thank you.

Hi Post 4 above gives the link to HMRC Real Time Reporting Return for a foreign disposal, but post 6 says 'Any foreign income or capital gains must be declared in a Self Assessment Tax return.' Please could you confirm whether the Real Time Return can be used to report the disposal of a foreign property for someone who doesn't submit tax returns? Thanks.

Hi,

You can use the real time as long as its not a UK residential property see: Report and pay your Capital Gains Tax  . Thank you .

I am having problems with the CGT part of my Self-Assessment tax return. I have sold a property in Florida and paid US CGT there. When I complete the HMRC return, the CGT tax computation appears to be correct until I add the claim for the CGT tax paid in the States, when, as far as I can tell, the end result is incorrect. I am guessing that I am answering one or more of the questions in the return incorrectly, but do not know which one! Can anyone give me guidance, please, or point me in the right direction? Many thanks.

Hi I am a visa holder landed the UK in July 2021; while spouse landed in Oct 2021. We sold our main home in overseas home country in Sept 2021 and incurred capital gain. We checked to HMRC website we are eligible to full Private Residence Relief for the gain. I did not work and did not have other income during 2021-2022 therefore I did not report this gain and file self-assessment. Is this correct? I started to work and have other income in 2022-2023. I will file self-assessment for 2022-2023. I am not sure if I have to report the above mentioned capital gain in 2022-2023. Thank you.

Hi, I'm trying to estimate UK CGT on a possible sale of a ski chalet in Switzerland. The property was bought off plan and the purchase deed signed in Nov 2007. The deed required the price was then paid in 4 instalments. 1. when the deed was signed in Nov 2007, 2. when the slab was laid in Sept 2008, 3. when the roof was completed in April 2009 and 4. on the handover in in Sept 2009. The FX rate changed significantly during this period before moving into the property. Do I calculate the 'purchase price in GBP' using the FX rate for each instalment which reflects the actual price paid in GBP. Or do I use the FX rate at the time of the deed signing or the FX rate at the time of moving in ? Using the FX rate at the time of each instalment paid seems to give the 'correct' GBP purchase price. Thank you

Hi,

You will show the sale as if it is a UK property that you sold so that the charge appears in the calculation. At the tailor your return section, you need to answer yes to the question, Do you wish to claim Foreign Tax Credit Relief on Capital Gains. This the allows you to enter the tax paid in USA (converted to sterling).

Thank you.

Hi, Yes, I understand about Foreign Tax relief. But I'm looking for advice on how to to determine the original purchase price in GBP. Do I sum up the 4 instalments paid (over 2 years) in CHF and convert each instalment using the prevailing FX rate at the time the instalment was paid? Or report the price agreed at the time of the deed signing and convert that to GBP using the FX rate at that time ? there is a big difference between the 2 approaches thanks.

Hi,

If there is no gain arising from the disposal of the overseas property, there is nothing to declare. You would need to review the statutory residence test, to determine your residence status for 2021 to 2022.

RDR3: Statutory Residence Test (SRT) notes

If you are considered to be resident in the UK for the whole tax year, you will then need to review whether split year treatment applies. If it does, you will need to delcare this in a Self Assessment Tax Return. If split year treatment does not apply, then you would need to declare your world-wide income on a tax return and claim a foreign tax credit for 2021 to 2022.

Thank you.

Repost this..... still waiting for reply thanks Hi I am a visa holder landed the UK in July 2021; while spouse landed in Oct 2021. We sold our main home in overseas home country in Sept 2021 and incurred capital gain. We checked to HMRC website we are eligible to full Private Residence Relief for the gain. I did not work and did not have other income during 2021-2022 therefore I did not report this gain and file self-assessment. Is this correct? I started to work and have other income in 2022-2023. I will file self-assessment for 2022-2023. I am not sure if I have to report the above mentioned capital gain in 2022-2023. Thank you.

Hi, Sorry. I am very confused. The answers posted here by HMRC 32 to my 2 questions do not seem to be related to my questions at all. Shall I ask my questions again ? thanks,