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I am sorry that there are some confusion after reading the HS283.
After leaving HKG on 7 Sep 2021, due to Covid and economies downturn, we spent toally 11 months to sell property to a new owner. Do I entitle full PRR and no need to report OR should I still report he 2 months gain per the above formula calcualtion?
Please advice. Much appreciated for your help.
Thank you for your reply. I got some folow up questions here,
Q2: Thanks for confirming Sep 2021 is included as HKG for the purpose of Private Residence Relief. SInce the last 9 months before I sold my home would get relief, Oct-Nov2021 would be considered as the number of months for taxed capital gain. Would you please confirm the formula is correct with the background provided?
-Total number of months required to pay tax = 2 months
-Total number of months owned = 220 months.
-Husband and wife equally share the ownership of the property in 50-50 basis.
Formula: Total Captial gain for tax reporting = 2 months / 220 months x (50% of total net gain from selling price in GBP minus buying price in GBP)
Q6: Woudl it be SA108? I could not see the foreign section from the capital gain tax summary SA108 2022. Please kidnly advice the correct form that I should use.
We arrived UK from HKG on 8 Sep 2021 through BNO VISA. The property in Hong Kong is our only home. Property was bought at the end of April 2004 and sold in mid Aug 2022. After putting all information into the test of Private Residence Relief, our case fulfill the criteria of private residence relief as partial relief. I got few questions as below.
1. Would Sep 2022 be considered as the month we stay in our home in Hong Kong or UK?
2. The total number of months we own the property is 220. Should we put 2 or 3 months over 220 for calculating the net gain for tax reporting?
3. The property owned by my wife and myself. Should we report this capital gain separately in two different submission?
4. Should we wait until Oct 2023 to report this capital gain in the 2022-2023 fiscal year?
5. Would this capital gain tax share the allowance GBP12,300 with other capital tax gain that came from stock and shares?
6. Which form should we use for reporting?
Thanks for your help
Where could I find the April 2004 Exchange rates from HMRC?