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Where Taxpayers and Advisers Meet

tax arising from purchase of shares in euro

marinero
Posts:7
Joined:Mon Feb 01, 2021 1:42 pm
tax arising from purchase of shares in euro

Postby marinero » Mon Feb 01, 2021 1:50 pm

I am an EU national based in the UK. My savings and investment account is in euro on Interactive Brokers.

Say I bought 1 share for €100 1st of Jan and sold it 1st June months later for the same price (ie no euro profit). Am I still liable for capital gains tax on the value of the currency difference? Ie €100 euro was 80p sterling on 1st jan and €100 is 90p on the 1st of June do I have to pay capital gains (or currency gains) on that 10p?

Please note that the account at my brokers is in euros and at no point did I convert any monies into sterling.

thanks for the help.

maths
Posts:8300
Joined:Wed Aug 06, 2008 3:25 pm

Re: tax arising from purchase of shares in euro

Postby maths » Mon Feb 01, 2021 6:13 pm

Yes. Capital gains have to be computed in £ whether or not there is any conversion from euros to £ or not.

marinero
Posts:7
Joined:Mon Feb 01, 2021 1:42 pm

Re: tax arising from purchase of shares in euro

Postby marinero » Mon Feb 01, 2021 9:00 pm

Sure, I understand that but the shares were bought and sold at the same euro price. Do I have to pay tax for the theoretical profit I made because by base currency is euro? It feels a bit unfair, that's why I am asking. Shares bought for 100 sold for 100 (euro).

marinero

ben_power
Posts:63
Joined:Tue Feb 27, 2018 8:34 pm

Re: tax arising from purchase of shares in euro

Postby ben_power » Mon Feb 01, 2021 9:47 pm

The purchase price would be converted into £ and the same for that sale price resulting in a 'gain' and therefore potentially liable to CGT. Whether the gain was generated by capital appreciation or currency is irrelevant. Sorry.


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