sterling conversion on sale of overseas home

[gregh_is]

Sterling conversion
I moved to the UK from Australia and now I’m looking to sell my family home. To calculate my gain, I’m:
1. converting the purchase price to sterling at the spot rate on the purchase date.
2. converting the sales proceed to sterling at the spot rate on settlement.
3. calculating the sterling gain as the difference between 1 and 2 above.

Is that correct?

I've seperately adjusted for associated expenses and for PPR and letting relief. I'm now domiciled.

Treatment of mortgage
I also have a mortgage on purchase and some mortgage remaining on sale - is that factored into (i) the CGT calculation or (ii) sterling conversion?

Thanks in advance.

[pawncob]

You can use spot rates or average per HMRC tables.https://www.gov.uk/government/publications/exchange-rates-for-customs-and-vat-yearly

Mortgage is irrelevant to the gain position.

Do a search on TW for examples.

[AGoodman]

You may well qualify for principal private residence relief, assuming you were tax resident in Australia while it was your principal home. On a sale before 6/4/2020, you'll get the last 18 months included for free (9 months afterwards).

If you qualify for 100% relief, you may not even need to declare it.

[maths]

In addition to private residence relief and lettings relief you will also be entitled to an annual exempt amount (£12,000 for sale pre 6.4.20 or £12,300 thereafter).

As A Goodman comments better if you can "exchange" on the sale pre 6.4.20. Exchange is key, not completion for CGT.

If private residence relief plus annual exempt amount produces no gain then no need to declare sale to HMRC. However, if lettings relief also needs to be claimed to produce a nil gain then it will be necessary to file a Tax Return.