Hi,
The disposal will need to be calculated in pounds sterling using just and reasonable exchange rates that applied at the time you inherited the property and the disposal value. Whether there is a gain or a loss, you will need to report the disposal of the property in a Self Assessment tax return, in the capital gains section of the tax return and again in the foreign section of the tax return, where you can claim up to 100% of a foreign tax credit to set against any UK capital gains liability.
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 2010
You are free to use any of the supplied rates or one of your own choosing.
Thank you.