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Where Taxpayers and Advisers Meet

Exchange rate and time of exchange for tax

flydigital
Posts: 13
Joined: Fri Nov 28, 2014 2:20 pm

Exchange rate and time of exchange for tax

Postby flydigital » Fri Aug 02, 2019 4:24 pm

If I earn $1,000 in the United states in January 2019, paid into a US bank account and then chose to send that money to my UK bank account in January 2020, how do I report this in my SA return?
Is the exchange rate and the moment I have received this income January of 2019, or January of 2020?

Asides from the moment of earning the income, the exchange rate when I earned the money and the rate when I actually exchange it to sterling may be very different.

Thanks for any info anyone can offer on this.

DavidTreitel
Posts: 204
Joined: Thu Aug 16, 2012 4:31 pm

Re: Exchange rate and time of exchange for tax

Postby DavidTreitel » Mon Aug 05, 2019 6:19 pm

Was this employment income? Business Income? Investment Income? Capital Gain? Where are you domiciled for UK tax purposes? Are you a US citizen, green card holder or resident?

flydigital
Posts: 13
Joined: Fri Nov 28, 2014 2:20 pm

Re: Exchange rate and time of exchange for tax

Postby flydigital » Tue Aug 06, 2019 9:30 am

Permanent UK citizen.
Not a US citizen

Income is from dividends from stocks.

DavidTreitel
Posts: 204
Joined: Thu Aug 16, 2012 4:31 pm

Re: Exchange rate and time of exchange for tax

Postby DavidTreitel » Wed Aug 07, 2019 8:47 am

The exchange rate is the date the dividends were due - January 2019. The income is UK taxable in 2018-19. You will have had 15% US tax withheld and can claim double tax relief in the UK for that US tax.


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