Cgt on currencies

[Jenseninterceptor]

I sold an overseas property last year and paid UK CGT calculated on the difference between the sterling value at dates of purchase and sale. The sale proceeds remain in foreign currency. Post Brexit this has increased in value in sterling terms. Will there be CGT to pay if I convert to sterling? Thanks

[maths]

No.

[Bikiwi]

Hi,
Can I respectfully ask the rationale for this answer please ?
HMRC states “Any foreign currency you bought for your own or your family’s personal use outside the UK” is exempt from CGT.
Could HMRC argue that in this case the foreign currency was obtained for repatriating to the UK (else why convert to sterling) hence implying it was not bought for personal use outside the UK and thus subject to CGT ?
Many Thanks, B

[bd6759]

[quote="Bikiwi"
Could HMRC argue that in this case the foreign currency was obtained for repatriating to the UK (else why convert to sterling) hence implying it was not bought for personal use outside the UK and thus subject to CGT[/quote]
No, because not even HMRC could follow that logic.

Carrency on deposit is exempt form CGT.

https://www.gov.uk/hmrc-internal-manual ... al/cg78321

[Bikiwi]

Thanks – that’s really useful as I’m struggling to understand some of the stuff on HMRC's website.

Can you please also comment on a related point - the interest from my main foreign currency bank account is paid into a separate "interest only" bank account, and I periodically bring this interest back to the UK as GBP – is this interest also exempt from CGT (gains between the date interest was paid and the date converted to GBP) ? CG78315 indicates interest is subject to CGT

Much appreciate your reply,

Bikiwi

[bd6759]

Ghere is a difference between foreign currency and a foreign curreny bank account. From April 2012 the latter is exempt.

[maths]

The interest which is presumably credited in foreign currency is subject to UK income tax at the sterling equivalent amount the date the interest is credited to the account whether converted into £ or not.

If the interest sits in foreign currency and then later is converted into £ there is no UK tax charge on any gain made.

[Bikiwi]

Thanks both of you for taking the time to clarify
maths - yes, interest is credited exactly as you presume, and I understand the income tax side.
Best Regards, Bikiwi