sold a foreign residential property for rent and recorded a loss

Hi, I am a UK tax resident. In January 2023, I sold a Hong Kong residential property for rent and recorded a loss. Now I plan to convert the funds from Hong Kong dollars into US dollars and remit them to the UK. May I ask whether I should have a tax return for the sale of the property. If I need to have a tax return, what tax return form do I need to fill in? Thanks Angela PAN

Hi,

You are not required to report capital gains losses to HMRC. If you choose to do so and you complete a tax return, you would declare the losses on SA108 or the online section relating to capital gains. If you do not complete a tax return, then you would submit a letter to claim losses.

Thank you.

Hi, Can I transfer the capital to my UK bank account after declaring the losses on SA108 relating to capital gains on this tax year? Are there anything I needed to report to HMRC except declaration in SA108 before the transfer? Thanks, 

Name removed admin .

Hi

When you are transferring your own existing assets to yourself, repatriation of funds or assets, there are no tax implications of transferring money to the UK. Only any interest that this capital generates is then taxable.

You can report your loss to us through Self Assessment, SA108.

Thank you.

hi Thanks for your kind reply! Where can i find SA108? Thanks

Hi Angela,

This can be found at Self Assessment: Capital gains summary (SA108)

Thank you.

Hi HMRC I am also a UK tax resident and landed in the UK in Apr 2023. In Dec 2023, I sold a Hong Kong main residential property and recorded a loss. I want to report the loss through Self Assessment, SA108, could I report the total loss amount? Or I can only report the loss for the period after i landed in the UK (i.e. UK part from Apr to Dec 2023). Thanks

Hi,
Please refer to CG25330A - Remittance basis: election for foreign losses to be allowable: TCGA92/S16ZA
Thank you.
 

Hi. I am resident in UK last 20 years. I recently sold my apartment in Dubai this year and incurred a loss. I also sold a piece of non residential land in UK and received a capital gain. I have two questions. 1. Can I offset the capital loss from my foreign property sale against the capital gain from UK land sale. 2. Should I file both these gains and loss in my SATR or file capital gains/ loss individually on HMRC capital gains portal. Kindly help

Hi,
Yes you can, and both should be reported in your tax return for 2024 to 2025.
Thank you.

Thanks HMRC Admin 19 for quick response .The property I sold in Dubai was an apartment which was bought in Feb 2008 as off plan with initial deposit and registered as title deed in my name only in Jan 2012 after completing and full transfer to me. So what UK pound to UAE Dirhams exchange rate should I use to calculate the initial cost in pounds? Exchange rate as in Feb 2008 or in Jan 2012? For the UK land sale which had no house or planning permission what will be the rate of capital gains I should use to calculate how mush CGT to pay?

Hi,
The date of acquisition of an off plan property, is the date of completion for Capital Gains Tax purposes. 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 here:
Exchange rates from HMRC in CSV and XML format
and for older rates here:
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. 

Hi My wife owned a property in Ireland which she sold recently. She incurred a capital loss on the sale and has declared it to HMRC via a Self Assessment. My question is, if I gift my wife crypto as a no loss/no gain transaction, if she realises the crypto into cash, can she offset any capital gain from the crypto against the loss she incurred from the sale of her house in Ireland? Finally, does the realisation of the crypto need to take place in the same tax year as when she incurred the capital loss from the sale of her house in order to offset the gain? Many thanks Simon

Hi ,
 

Yes, you can gift crypto to your wife at your acqusition cost and she can set her loss against this gain.  The loss can be carried forward to a future tax year, so the gain does not need to be in the same tax year as the loss arises. Thank you .