Reporting capital gains from investment held in a foreign currency

Hi, I am a resident in the UK for tax purposes. I have accumulated a single asset investment over a long period of time, it is priced in EUR, linked to a foreign EUR bank account and held in a foreign country. My questions are the following: 1) Would I need to report any realised gains made from this investment in the foreign section of the self-assessment tax return? 2) Are any gains in GBP calculated based on the exchange rate on the day they were realised in EUR (i.e. by simply converting the realised gains in EUR to GBP on the day of sale, using the overall base cost in EUR)? 3) Or, do the gains in GBP have to be directly calculated using the overall base cost in GBP computed using the exchange rates on the date of each acquisition throughout the period in which this asset was accumulated (i.e. by substracting the gains in GBP at the date of the sale from the overall base cost in GBP computed at the date of each acquisition). 4) To compute the overall costs and gains in GBP, do I have to use the MONTHLY average exchange rates published by HMRC or can I use an online currency converter to convert the amounts DAYLY at the date of each acquisition/sale? 5) I have not filed a self-assessment tax return for 2022-2023 and I believe I may have committed an error(s) when calculating the 2022-2023 capital gains and may have a small amount of capital tax to pay (

Hi,

As a UK resident you are taxed on the arising basis on your worldwide income and capital gains. If you dispose of foreign assets, you are required to report this in a Self Assessment tax return.  

The calculation for capital gains is in pounds sterling at all stages. Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal. For your convenience, there are exchange rates here:

Exchange rates from HMRC in CSV and XML format

and for older rates here:

Foreign exchange rates and spot rates: 1 January 1989 to 31 March 2009

You are free to use any of the supplied rates or one of your own choosing. The gains are declared on SA108 and if foreign tax is paid on the gain, you also declare on SA106 and can choose to claim a foreign tax credit of up to 100% of the foreign tax paid. This will prevent you being taxed twice.

Thank you.

Hi Admin 19, Thank you for your reply. The last 2 questions of my post were actually cut out so here they are: 5) I have not filed a self-assessment tax return for 2022-2023 and I believe I may have committed an error(s) when calculating the 2022-2023 capital gains (conversion to GBP at the times of acquisition) and may have a small amount of capital tax to pay (

Hi Admin 19, the questions were cut of again: 1. Can I use the real time system to declare and pay minor amounts of tax on small gains made in 2022-2023 or is it too late and should I rather write directly to HMRC? 2. When using the Real time system to report CGT, do I still have to file a self assessment even though I do not have anything else to declare? what about when declaring a sale of overseas property? Thanks

Hi TeaJay92,
If you are required to complete a tax return, you can do so online via your personal tax account.
Paper tax returns can be obtained from:
Self Assessment tax return forms.
If you have declared your capital gains using the online servies, you can amend them before you submit your tax return.
Once your tax return is processed, you can only amend your capital gains through your tax return.
Thank you. 

Hi TeaJay92

It is now too late to use the real time for 22/23 capital gains and a tax return is required. this is now also late as the due date for tax returns was 31/1/24.
If in future you have gains to report, you can use the real time system by 30 December and if no other critiria for a tax return then you do not need to file a full return.
The sale of overseas property can also be done on the real time system without the need for a full return (subject to the date above).

Thank you