Capital Gains Tax on Foreign Property - How are gains/losses on debt handled

G

greenandred

Guest
Hope some one can help.

Does capital gains tax calculations take account of how you financed your foreign property investment ?

1.For example let say you bought property in UK with 100% sterling finance therefore no sterling exposure, your gain is calculated based on the exchange rate for the date of purchase and date of sale - straightforward.

2.Now let you say you bought and sold property in UK on the same days above with your own euro funds and exchange rate moves against you by 10%. Is the capital gain calculation the same as 1 above or is it reduced by your exchange loss ?

Finally in relation to off plan purchases is the transaction date for capital gains tax the completion date rather than the contract date.

Thanks

Green and Red
 
advice is a noun, advise is a verb.

And no, the computation of your capital gain or loss does not take account of the fx movement on your borrowings to finance the purchase of the asset.