Overseas home owners feel the pinch

Because UK capital gains tax is calculated on the basis of proceeds less cost, expressed in sterling terms at the point of purchase and sale, home owners could find themselves paying capital gains tax on a sale, even if the property value has not increased, says Baker Tilly.   “Take a property bought for €250,000 at last August’s rate. In Sterling terms the cost was £195,000. A sale now, for the same Euro value, and therefore no real gain, would mean Sterling proceeds of £219,000, giving a taxable gain of £26,000. This is even if the money stays abroad or is used to repay a mortgage. That...