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Posted Tue, 10 Oct 2023 14:11:53 GMT by
Hi, As I have checked by the online calculator, found that there is no tax needed to pay for the disposal of the oversea property (i.e. in Hong Kong) initially. In this case, do I still need to report the return.? And then, we have a joint account for this property in Hong Kong before sold. I would like to know whether we have to report separate tax returns for the income from sales in case it still submit the return. Thank you
Posted Fri, 13 Oct 2023 21:58:16 GMT by
Repost this again..... 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.
Posted Mon, 16 Oct 2023 15:01:11 GMT by
Hi - if declaring capital gains from property sold abroad whilst being a UK resident if the country operates a dual tax system do you have to complete a form for relief - tax has not been paid in the country the property was sold in yet.
Posted Tue, 17 Oct 2023 07:48:03 GMT by HMRC Admin 19 Response
Hi ArthurW,

If you sold your share for more than £49200, then you will still need to declare it, unless this was your main residence prior to arriving in uk.

Each individicual needs to report their own taxes so if a return is required, you will both need complete one.

Thank you.
Posted Tue, 17 Oct 2023 08:07:32 GMT by
Thank you. As the country the property was sold in is Portugal that operates a dual tax system do they need to claim tax relief - I’m assuming they have to report it in Portugal and pay tax there. I’m not sure which tick box to use on the foreign income pages either
Posted Tue, 17 Oct 2023 09:30:32 GMT by
Hello, I was non-resident from 2006 to 2018 as I was working abroad in the usa. In July 2018 I returned to the uk and became resident again. I retained a UK home property throughout. In 2007 while in the usa I bought a holiday home off plan in Switzerland (signed the deed in Nov 2007) and the property was finished in Sept 2009. During the construction period the property was paid for in 4 installments between November 2007 and September 2009. I am considering selling the Swiss property and know I will be subject to both Swiss tax and UK CGT. I am aware a treaty is in place. Calculating on the difference between the purchase price in Swiss Francs in ~ 2007 and the sale price in Swiss Francs (in say 2024) is easy. However, can you please advise how I calculate the purchase price in UK Pounds in order to estimate the CGT due? The difficulty arises because the property was paid for in instalments as the construction proceeded (standard practice in Switzerland) 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 Swiss Franc / UK Pound Exchange rate (FX) rate changed significantly during this period between signing the deed and moving into the property. Do I calculate the 'purchase price in GBP' using the FX rate at the time each instalment was paid and sum them up which reflects the actual price paid in GBP. Or do I use the FX rate at the time of the deed signing (Nov 2007 or the FX rate at the time of moving in (Sept 2009) ? Using the FX rate consistent with the timing of each instalment paid would seem to give the 'correct' GBP purchase price. Cn you please advise. Thank you
Posted Wed, 18 Oct 2023 10:19:54 GMT by HMRC Admin 20 Response
Hi David Moore,

As the deed will have agreed an overall price for the property, it is this date that and amount you will use. the ability to pay it in 4 instalments should not have affected the purchase price.

Thank you.
Posted Wed, 18 Oct 2023 10:49:40 GMT by
Hi I entered the UK with BNO 5+1 visa and sold my only self occupied property in Hong Kong seven months after entering,Do I not need to declare CGT on my tax return?
Posted Wed, 18 Oct 2023 21:34:27 GMT by
Reposting this again..... 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.
Posted Thu, 19 Oct 2023 10:39:38 GMT by HMRC Admin 20 Response
Hi Jane

You need to report the sale in the UK and claim foreign tax credit only if foreign tax has been paid.
If the sale has only just happened, you do not need to report this until you are submitting your 23/24 tax return by which time you should have paid
any foreign tax that is applicable to then allow you to claim the relief here.

Thank you.
Posted Thu, 19 Oct 2023 14:19:27 GMT by
Thank you - the sale was in February 2023 so I must report it on the 22/23 tax return. Would it be better if we report it in Portugal now (we weren’t able to until June 23 by their rules) then pay the tax and the. Claim relief?
Posted Fri, 20 Oct 2023 13:45:43 GMT by HMRC Admin 25 Response
Hi Jack So,
Only of there was a capital gain using the UK rules for working out the gain.
You may find that private residence relief will cancel out any gain.
All parts of the calculation must be in pounds sterling using a just and reasonable exchange rate in use at the time of acquisition / disposal.
There is a calculator at to help work out if there is a gain.
Tax when you sell property
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.
HMRC provides a set of exchange rate for other reasons at:
Exchange rates from HMRC in CSV and XML format
and archived at:
Exchange rates.
There is a choice of rates, you are free to use any of them or a rate obtained elsewhere.
Have a look at:
Private Residence Relief (Self Assessment helpsheet HS283)
Thank you. 
Posted Sat, 21 Oct 2023 20:59:00 GMT by
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Posted Sun, 22 Oct 2023 11:34:59 GMT by
Hi. I'm a UK resident that has owned a second french property for 30 years with my French wife who died 13 years ago. I am in the process of selling the property at 499,000 euros and paying French Capital Gains Tax with the remainder going into my French bank account. At the point of sale, using the same French Notair, I wanted to gift my 2 dual nationality kids (both residents in the UK but with french bank accounts / passports) 130k euros EACH which is just under the gift tax threshold according to French law. The amount that initially enters my French bank account will already have the 2 X 130k (so 260,000 Euro) gift removed as well as the French Capital Gains Tax by the French Notair. What do I need to declare and pay "capital gains wise" in the UK as a 40% tax payer following the completion of the combined house sale & gifting process in France? Thanks in advance for your advice, David.
Posted Sun, 22 Oct 2023 19:45:11 GMT by
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.
Posted Tue, 24 Oct 2023 14:34:22 GMT by HMRC Admin 17 Response


Hi,
 
I regret that we cannot advise how much capital gains tax you will need to pay. 

There is a calculator at :

Tax when you sell your home   ,

which should help you work out your gain. 

You should convert the acqusition costs, using a just and reasonable exchange rate in use at the time of acquisition. 

The same should be done at the time of disposal. 

If the property was your main resident for a period of time, you may be able to claim private residence relief
to set agains any gains that arise.

 Guidance on private residence relief can be found at :

HS283 Private Residence Relief (2023)  .

Thank you .
Posted Tue, 24 Oct 2023 14:50:58 GMT by HMRC Admin 32 Response
Hi Jane,

The double taxation agreement between the UK and Portugal, gives Portugal the right to charge capital gains tax on the Portuguese property disposal, first. However, HMRC still has the right to tax your world-wide income and capital gains. This in itself would result you paying tax on the same gains in both countries, double taxation would be the result.

To ensure that this does not happen, you would need to claim tax relief of up to 100% of the capital gains tax paid in Portugal, which would be set against your UK capital gains tax liability. This means that you do not pay the tax twice.  

If you need to submit your 2022 to 2023 tax return without claiming a foreign tax credit, because you don't know how much Portuguese tax needs to be paid, then you could amend your 2022 to 2023 Self Assessment Tax Return at a later date.

Thank you.
Posted Thu, 26 Oct 2023 08:05:09 GMT by HMRC Admin 20 Response
Hi David Male,

"Under the terms of Self Assessment, HMRC does 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.  None the less, HMRC does have an archive of exxhange rates, which you can use if you want to.  
(Exchange rates from HMRC in CSV and XML format & Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009.)
There is a calculator at Tax when you sell your home that will help you work out if there is a capital gains liability in the UK.  
You will need to use a just and reasonable exchange rate, to work out the acquisition value and costs and convert to pounds sterling, using an exchange rate at that time.  
If this property was your main residence at any time, you may be entitled to claim private residence relief, have a look at HS283 Private Residence Relief (2023)
Any gains should be reported in a self assessment tax return on SA108 and if you paid capital gains tax in France, you should also declare on SA106, where you may be able to claim a foreign tax credit.

Thank you.
 
Posted Thu, 26 Oct 2023 08:16:23 GMT by HMRC Admin 20 Response
Hi YYAL,

No you dont need to report the gain.

Thank you.

 
Posted Fri, 03 Nov 2023 20:51:24 GMT by
Hello, I am a resident in the UK with Skilled Worker Visa for 5 years. I moved in to the UK in June 2023. I had been gifted a property in overseas (Turkey) back in 2015 by my father. The property is registered under my name. My father passed away and I decided to sell this property which was gifted to me from my father. I am planning to transfer this income, which is approximately £250,000, from my personal bank account in Turkey to my personal bank account in the UK. In this case, do I need to pay Capital Gain Tax? I would appreciate your reply. Thank you.

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