Value of overseas property (EU) for CGT

How to determine the value of a house I am selling (for the purpose of CGT)?

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Hello, I am a UK resident (Italian nationality). I inherited a property (in Italy) in 2014 from my late mother and after renting it for 5 years, I now want to sell. I know I will be liable for CGT on the profit, but how to determine this? I am not aware of a valuation done in 2014, but it think this figure may be higher than what I am selling for now (180k).

How can I calculate this?

What proof will HMRC look for to prove I did not make a profit? 

I work part-time and make way less then personal threshold. Thank you

Replies (5)

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By Leywood
02nd Feb 2023 12:21

Get it valued.

Get an Accountant.

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Replying to Leywood:
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By fionaH
02nd Feb 2023 12:35

Thank you, the issue is that I need the value of it when I inherited the house in 2014. I will have the sale price to show today's value, but what about the past?

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By Matrix
02nd Feb 2023 12:22

I expect you would need a valuation for your Italian tax return, do you know what your Italian tax adviser will be using?

You would need the probate value, I don’t know if they have a similar value.

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Replying to Matrix:
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By fionaH
02nd Feb 2023 12:36

Good idea to ask my Italian accountant, they may have a record of it from 2014. Cheers!

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By newman
06th Feb 2023 21:11

1. The property value is shown on the Declaration of Inheritance you submitted to the Italian Revenue Agency.
2. Check whether there is CGT to pay at www.gov.uk/tax-sell-property/work-out-your-gain and keep a copy of the result.
3. If you do not have to pay CGT on the sale of the property in question, AFAK you do not need to do anything (others will confirm or correct).
4. If there was a loss and you think you will make a chargeable gain in the future, you may wish to declare it on your tax return and carry the loss forward.

Hope you have been declaring to HMRC your Italian letting profits when UK resident!

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