H & W (UK residents) disposed of US vacation home during 20/21 tax year. IRS withheld 15% of selling price and due to Covid have yet to determine the final tax situation but determination is imminent and a refund will be due. How should the couple's Self Assessment for 20/21 be completed - should it include:
a) the full selling price (less selling expenses) which may result in a CGT loss; or
b) the net price received (which is less the Witholding Tax) and treat the Witholding Tax refund when its received in the 21/22 tax year. The difference will also impact the exchange rates as they will have changed +/- 10% between the 2 dates.
Is there an expert out there who could advise? Thanks in advance