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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have sold a property in Spain and made a significant loss. I

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I have sold a property in Spain and made a significant loss.
I need to file the loss this year on my return. I have the exact exchange rates for the purchase and sale dates but not for the dates I made improvements.
For CGT do I use the average exchange rates per the HMRC website or do I need to find the exact spot rates for the dates of the improvements?

Thanks for your question, I am Sam and I am one of the UK tax experts here on just Answer.

You can use the average rates for the year or the actual rates for that period, in which the improvements fell.

Just use the same method for all currency exchange occasions (so it would be prudent to use HMRC average/spot rates for the sale, the purchase, and the improvements.

Note that only capital improvements are allowable against the gain - so those that saw a complete overall - say of bathroom or kitchen, or an additional extension to the property, You cannot claim general repairs or part improvements - these would only be available to offset against any rental income made.


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