CGT calculation on overseas property

[mikeba]

How would CGT be calculated on an overseas property sale for someone who is a recent resident (year 2022) in the UK but the property has been owned for over 2 decades (year 2000).

Will the deemed value of the property in 2022 (when I gained residency) against value in 2024 be applicable to calculate the gains or will the original purchase price in a 2000 minus the sale price in 2024 be considered for computing the gains?

Logically the property had appreciated quite a lot in those 20 years compared to the last 2 years, so the gains were made before gaining UK residency?

Also, there would be quite a lot of currency exchange rate change against the pound.

 

[UK Contractor Accountant]

If you are a UK resident, the general principal is that you are obliged to pay Capital Gains tax on the disposal of assets worldwide. This includes any overseas property you own.

The tax is calculated on taxable gains which are the difference between the purchase price and the selling price, less any allowable selling and purchase costs e.g legal & selling fees.

There are special rules if you are resident in the UK, but your domicile is abroad. Individuals who are non-domiciled in the UK for tax purposes, and eligible for remittance basis of taxation only have to pay tax on the capital gains if and when they bring (remit) the funds into the UK.