½Û×ÓÊÓƵ

Remittance basis and foreign currency bank accounts

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Remittance basis and foreign currency bank accounts

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

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.

Fundamental change to foreign exchange gains from 6 April 2012

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:

  1. •

    gains on foreign currency accounts will not be taxed, and

  2. •

    the complexities of the previous regime have been swept away

However, if there is a loss on foreign currency, then there is no relief for that loss.

See Example 1.

Rules for tax years up to and including 2011/12

The remainder of this guidance note discusses the position in tax years 6 April 2008 to 5 April 2012.

For the purposes

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by
  • 28 Sep 2022 12:59

Popular Articles

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

14 Jul 2020 12:12 | Produced by Tolley Read more Read more

Research and development expenditure credit (RDEC)

Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for

14 Jul 2020 13:24 | Produced by Tolley in association with Will Sweeney Read more Read more

Enterprise management incentive schemes

Enterprise management incentive schemesWhat is an enterprise management incentive (EMI) scheme?The enterprise management incentive (EMI) scheme is a tax-advantaged share option employee incentive scheme aimed at small entrepreneurial companies that meet certain conditions. It is designed to assist

14 Jul 2020 11:36 | Produced by Tolley Read more Read more