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overseas property sold and CGT

16/01/2019 14:17:52
I recently sold an overseas property in Portugal which i jointly owned with my wife. The property has been sold in 2017/18 tax year and i am trying to work out the figures for CGT purposes. My questions are :

a) the purchase was bought off plan . The transaction was in Euros and there were a series of stage payments made over 18 month period. Do i need to treat each stage payment as equivalent sterling transaction with using prevailing exchange rate on the date of payment ?
b) the property was sold "as seen", meaning that all furniture and all electrical items were sold as part of the sale and were not negotiated separately. Can i offset cost of acquisition of these items as expense for CGT purposes since they remained in the property and were part of it when sold?
c) i do not have exact exchange rate for each milestone transaction as the purchase was done in 2003/06. Can i use exchange rate from currency website for the purpose of calculating everything back to Sterling ?

thanks
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Re:overseas property sold and CGT

16/01/2019 14:30:51
Hi,

The responses as follows

a) the date of the payment and the exchange rate used would depend on whether the property was not fully owned until the final payment was made. The exchange rate used would be the date that the contract changed hands and the property was officially yours as this is regarded as the date of acquisition.

b) you would just be using the total price paid for the property as everything was included together.

c) you can either use the historical exchange rates on our website or any other officially recognised exchange rate
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overseas property sold and CGT

16/01/2019 14:31:25
Also, can i offset loss arising from sale of the overseas property against gain arising from sale of a buy-to-let in the UK ?
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overseas property sold and CGT

16/01/2019 14:49:41

hi,
thanks for the reply. But, can you please advise what about question b) I asked ? Your reply is not clear.
The furniture and major electrical items were added by us to the property and did not come with the original purchase. So, do I add all the cost of this to the purchase price as additional cost ?
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Re:overseas property sold and CGT

16/01/2019 14:56:29
Hi,

In your first question you stated that these were included as part of the sale price and not negotiated separately, but now you are saying the opposite.

The response given was based on the fact that it was just a one off price agreed with the seller.

If this is incorrect, then you would not be able to claim for the cost of these items.