I have a property in Hungary that I got in 2019, which I am planning on selling now.
I got this property at a value of 33mil HUF which was around £95K in 2019.
I expect to sell it for 45mil HUF, which is around £100K today (HUF weakened a lot against GBP in the past 3 years).
Which of the following two scenarios apply?
1. Calculate my gains in HUF and then exchange it to GBP at the rate today. This would be a gain of 12mil HUF, which is around £27K, which would be £7500 UK CGT due (minus the Hungarian CGT equivalent).
2. Calculate my gains in ‘at the time’ GBP equivalents. This way I would have only made a gain of £5K, and hence no UK CGT due, as that is within my personal allowance.
Question: do I have any CGT to pay?
PS: I will also speak to a solicitor, but I would like to gather some initial feedback from the community.
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