Caroline Risk

Hi Adim20, Thanks for the comprehensive reply. Can you advise when exactly we need to report. I understand I can wait till i do my self assessment for 24/25 but what if you don’t normally do a self assessment? I have read conflicting information both on this thread and elsewhere. Many thanks.

Hi, My mother and I have recently sold a property in France. The property was initially purchased in 1989 by my mother and father and my father passed his share to me when he died in 2002. Originally purchased in French Francs 250k, valued at 48k euros in 2002 and sold for 85k euros in 2024. I understand that we have to use the prevailing rates at the time the transactions took place. However, what about the fluctuations in value due to exchange rates. I have read the following. Quote "Recognising the complexities involved in owning and selling overseas property, the UK tax authorities have introduced enhanced relief measures. These include adjustments for foreign currency fluctuations and allowances for periods of foreign occupancy. Such measures can significantly impact the CGT calculation, potentially reducing the taxable gain. These changes reflect the government’s recognition of the unique challenges faced by individuals owning and selling property abroad, aiming to provide more accurate and fair tax treatment in these situations." Is this correct and how do I quantify this in our situation, especially with the added complication of a change in currency in 1999. How does the official exchange rate of Francs to Euros of 6.55 affect this? The initial comparative value is easy as Sterling was converted and sent abroad, but how would the inheritance transaction be treated? The exchange rate at that time (1.55 euros to the pound) is wildly different to that now (1.19 euros to the pound) which has quite a large effect on the value of the property and the CGT calculations. I also presume this valuation would have no affect on the share held by my mother as she has maintained a half share ownership throughout. On a slightly different note, I understand that I don't have to report this gain until I do my self assessment next April 2025, is this correct? I have read much conflicting advise on this also, via this thread and elsewhere online so need confirmation that I don't need to do anything in 30 days or 60days. My mother does not do a tax return, how and when should she report this gain? Many thanks.