The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Foreign currency bank accounts are central to the operation of the remittance basis. See in particular the Remittance basis - setting up foreign accounts guidance note, but also the Remittance basis - mixed funds and When are income and gains remitted? guidance notes.
From 6 April 2012 foreign currency gains or losses made by individuals, trustees and personal representatives on the withdrawal of funds from foreign bank accounts are exempt for capital gains tax purposes.
Generally speaking, this is welcome news for taxpayers and their advisers since:
However, if there is a loss on foreign currency, then there is no relief for that loss.
See Example 1.
The remainder of this guidance note discusses the position in tax years 6 April 2008 to 5 April 2012.
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