foreign capital gains tax
I would be obliged if anyone could tell me if I am missing something here. The figures are rough so please don't pick any holes in them!!
A Cypriot property was purchased in 2002 for 59000 cypriot pounds - circa £64000 sterling. Converting this into euros at that date on OANDA is about €101,000, although Cyprus didn't enter the euro until 2008.
It was sold in 2009 for €130,000 less fees of €9000 = €121,000 circa £112,000 sterling which equals approx 64,000 cypriot pounds.
There was no capital gains tax to pay in Cyprus.
The cypriot pound and euro gains are relatively small however the sterling gain is circa £48,000. I believe it is this figure that the UK Capital Gains Tax liability should be based on but the client disagrees.
Any help / pointers in the right direction will be greatly appreciated.