Seeking Advice on Overseas Property Sale and Capital Gains Tax (CGT)

[MarcusW]

Hi everyone,

I’m looking for advice on a challenging situation regarding the sale of an overseas property. The property has been successfully sold, but due to foreign exchange restrictions in the country, I cannot transfer the proceeds to the UK at this time. Priority for currency conversion and transfer is given to urgent cases, such as medical emergencies.

This delay raises concerns about the timing of paying Capital Gains Tax (CGT) in the UK, as the funds may not be accessible by the time CGT is due. I would appreciate guidance on:

How to handle CGT obligations when the funds are unavailable due to foreign exchange restrictions.

Whether there are any provisions or reliefs that could apply in this case.

Additionally, I’m struggling to find tax advisors with expertise in overseas property transactions and CGT issues. Despite extensive web searches, I haven’t found professionals specializing in this area. Could anyone recommend how to locate such advisors or share recommendations for trusted experts?

Thank you in advance for your help!

[AGoodman]

There is a provision for relief under s.279 TCGA which delays the tax liability while you are unable to remit the funds to the UK:

https://www.legislation.gov.uk/ukpga/1992/12/section/279

The work involved in a foreign disposal is not particularly onerous or difficult so any chartered accountant with expertise in personal tax should be able to handle it fine. If you are still stuck, search STEP for accountants:

https://www.step.org/directory/members

[MarcusW]

Thank you kindly for this.
Would this be stated on a self assessment form or elsewhere?

[AGoodman]

You have to claim the relief. You may well be able to do this by letter but I'm not sure. You may need to contact HMRC and ask them.

If you file a tax return anyway, you may be able to make the claim in the return.