RE:Reporting CGT on Overseas Property sale

Hi zeynepde,
Yes, it is likely that you will have some Capital Gains Tax to pay on this disposal.
You would need to obtain the market value of the property at the time it was gifted to you and covert it to pounds sterling, using an exchange rate that applied at the time of the gift being made.
You would also need to covert the disposal value to pounds sterling and deduct from this, the market value and selling costs.
If the disposal value is more than the market value and selling costs, there is a capital gain and tax may be payable.
This would be reported in a Self Assessment tax return in SA108 and SA106.
 The exchange rate is not set in stone, which is why you have a choice.
 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.
 Exchange rates from HMRC in CSV and XML format
Is just one option you could use.
Thank you, 

Hi, I have been living in the UK for 3 years and in this year I sold an oversea property that I bought it 15 year ago. Before entering the UK it was my only private residence for 12 years. After entering the UK I rented it out (i.e. in this 3 years time) unit I found a buyer and sold it away. In this case, do I entitle any Private Residence Relief? Thank you very much.

Hi Joseph Cheung,
Yes you would be entitled to relief for the period you lived in it - Private Residence Relief (Self Assessment helpsheet HS283)
Thank you.

Hello, We built a second home in France which we have now sold. The French tax authorities have allowed a large plumbed in water softener serving the whole property (essential in the North of France) and a large woodburner against CGT. Would these claims be acceptable to HMRC? Furthermore, can we assume that all the invoices accepted by the French system as allowable against CGT would be allowed against UK CGT? Can we claim for all legal and surveying costs associated with buying the plot of land and all those associated with selling, including mandatory pre-sale checks such as septic tank inspection and energy calculation/building inspection? The online portal for submitting CGT details explicitly states that CGT claims relating to property cannot be submitted online, only via self-assessment. Can you confirm if it’s currently acceptable to submit details for foreign property sales using the online portal? My wife and I had joint ownership of the property but do not normally complete annual self-assessment for HMRC. To claim our separate UK CGT tax allowances do we just submit two separate claims using the online CGT portal with 50% of all expenses showing on each claim?

Hi,

The details you refer to can be claimed as allowable expenses to work out the gain. As its joint property then everything should be split 50/50. The online form is for UK residential property but you can use the real time system to report any gain. You can see guidance here:

Report and pay your Capital Gains Tax

Thank you.

Hi, I have sold a overseas property and have a capital loss. I have not remitted any amount to UK. Do i need to submit Capital loss details in Self assessment ?

Thanks for your detailed and useful response to my query HMRC Admin 19. pijin4

Hi
This depends on whether you are entitled to claim remittance basis or not. If you are uk resident and domicile, you need to report it.

Hi, I sold a property in The Netherlands which was my only residence for 5 years. For the last 15 years I have rented it out. I tried to put the sale in the CGT section in my Self Assessment, however it didn't deduct my capital gains allowance, that I'd lived there and hadn't bought it for profit and it was not used for business purposes. So I have submitted my tax return without this section due to the 60 day rule not applying? As capital gains tax seems so complex I would aprreciate guidance on how to submit the information to HMRC. Any help much appreciated.

Hello, my husband and I sold a property in Portugal and in the contract it states that it was sold with furniture and shows photographic inventory of furniture included. Is the cost of the furniture which we bought taken off the sold price when reporting the capital gain.

Hi, I moved to the UK in 2018. I inherited a land in an overseas country in 2009, in which I paid taxes there. Now it was sold two weeks ago so I am trying to submit a self-assessment. My issue is that I don’t know how to get the value of the property when I became the owner and what taxes I paid on it in 2009. What can I do and what documentation do I need to provide?

Hi spaceoddity2001,
The annual exempt amount will be in the calculation as long as you have declared the capital gain.
For the period that you lived there, you can claim Private Residence Relief and this figure should be deducted from the final gain figure.
You don't show it anywhere as an amount but you need to confirm that you are making a claim or election and then claim the Private Residence Relief option.


 

Hi Tarquin?25 Melia,

No, you cannot claim these as deductions.  

CG15250 - Expenditure: incidental costs of acquisition and disposal

The expenditure must have been incurred wholly and exclusively for the purposes of the acquisition or disposal. As the furniture doesn't meet this requirement it is not allowable.

Thank you.

Thank you for your reply. As the sale of the property was completed on the 29th December 2023 do we report the gain using the "Real Time" CGT service or do we complete Self Assessment forms for 23/24 bearing in mind that we do not know what tax is payable in Portugal . We both have Government Gateway accounts and are not required to fill in self-assessment information.

Hi RVS,

You would need to contact an estate agent or land registry office in the country that the land was situated.

Thank you.

Hi Tarquin?25 Melia,

No. The realtime capital gains service (RTTCGT) is for UK gains arising from other types of asset, such as jewellery, paintings, antiques, coins and stamps and sets of things, eg matching vases or chessmen. It should not be used for foreign property.  

You will need to complete a Self Assessment Tax Return, to report the capital gains arising from the disposal of a Portuguese property. You will need to work out the gains, using the UK capital gains process.  

There is a calculator below to help you do this.  

Capital Gains Tax

A figure should be converted to pounds sterling, using an exchange rate applicable at the 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:

The National Archives: Exchange rates from HMRC in CSV and XML format

For older rates at:

The National Archives: Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009

You are free to use any of the supplied rates or one of your own choosing. 

Thank you.

Further to Admin32 reply that I must complete a Self-Assessment form for year 23/24, my question is that as HMRC calculate what if any tax is payable through my online registration do I just complete the section regarding the capital gain from the sale of the property.

Hello, Just over a month ago, I posted a query about how to submit capital gains to HMRC for a property my wife and I have sold in Europe. Neither of us normally submit annual self-assessment details. A few days later, I received the following helpful reply from HMRC Admin 19. Posted about a month ago by HMRC Admin 19 Hi, The details you refer to can be claimed as allowable expenses to work out the gain. As its joint property then everything should be split 50/50. The online form is for UK residential property but you can use the real time system to report any gain. The key information I gained from this reply was that we could use the real-time system to submit our claims. Returning to the forum yesterday, I spotted the following answer to a similar query from another forum user. In this answer, HMRC Admin 32 clearly states that the real-time system should not be used for foreign property. Posted 17 days ago by HMRC Admin 32 Hi Tarquin?25 Melia, No. The realtime capital gains service (RTTCGT) is for UK gains arising from other types of asset, such as jewellery, paintings, antiques, coins and stamps and sets of things, eg matching vases or chessmen. It should not be used for foreign property. Please can I have confirmation of which is the correct guidance or am I missing something? Regards, Phil

Hi Tarquin?25 Melia

If you are UK resident and are required to complete a self assessment tax return, you are required to declare your world wide income and capital gains, in the tax return.  
This includes the disposal of your overseas property.

Thank you

Hi pijin4


You cannot use the PPDCGT online service, because this service is only for UK residential property. The RTTCGT service is for other types of capital gains that are not residential property, such as shares, jewellery etc as mentioned in your questions.  
Where there is a foreign capital gain, it can only be declared in a Self Assessment tax return.

Thank you