CGT on foreign second homes and X-rate

Different sources of monies were used to buy and renovate a French second home. What x-rates apply

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A UK resident taxpayer purchased a second home in France in 2004 using (i) euro proceeds from a previous property (ii)  transfers to euros from sterling and (iii) a euro mortgage. Signficant allowable enhancements were made from 2006 to 2008 with a total of some 30 invoices, variously sourced from (i) UK sterling transfers (ii) French deposit account and (iii) a new mortgage. The sale in 2019 resulted in a loss. Will HMRC accept the exchange rate at the date of completion of the purchase,  and date of invoices for costs; and will the proceeds be the date of sale or subsequent transfer to sterling?No monies were transferred back to sterling before the sale? In addition to the cgt loss calcualtion is it necessary to attach the numerous invoices , or completion statements, or  transalations of them? Thanks.

William 

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By johngroganjga
21st Jun 2020 20:23

The exchange rates to use will be the spot rates as at the dates of the various transactions.

You don’t need to attach any documents to your computation, but you obviously need to keep them to produce in the event of HMRC raising an enquiry.

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By Anonymous.
22nd Jun 2020 01:07

william69 wrote:

In addition to the cgt loss calcualtion is it necessary to attach the numerous invoices , or completion statements, or  transalations of them?  

I agree with johngroganjga about the translation of Euro amounts.

Also, as he indicates, the return is made on a self assessment basis and so is only subject to HMRC scrutiny in the event of an enquiry.

I don't think it was ever the case, even in the days prior to self assessment, to attach invoices, etc., to a tax return.

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