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How to calculate CGT of foreign property sale?

Property bought in Euro, for HMRC I need to provide calculations in GBP.

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Good morning,
In 2010 I bought a property abroad and paid for it in Euro as I was living abroad back then. Now I am a tax resident and domiciled in the UK and decided to sell my foreign property.
My question is about how I calculate CGT in terms of currency exchange - does the cost fo purchase should be converted from EURO to GBP based on the rate of exchange on the day of purchase in 2010 or I use the rate of exchange (EURO/GBP) on the date of sale in 2018?

Thanks in advance.


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19th Oct 2018 11:09

Convert to Sterling at date of purchase, convert to Sterling at date of sale, use Sterling at each date to compute gain.

Thanks (2)
19th Oct 2018 15:20

Just a couple of points
1] If the property was your main home, you can claim PPR relief, which is not restricted to UK situs property.

2] If the property was not your main home but was residential property the rate of CGT is 28%, not 20%

Thanks (0)
25th Jun 2019 18:05

I just came across this post (which comes high up on Google searches for some reason). Relevant issues re the potential residential/non-residential question (28% vs. 20% CGT) are in the link below.

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