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Posted Wed, 12 Jul 2023 16:35:03 GMT by
I came to UK in Aug 2022 and sold the property in HK in Feb 2023. I received the proceeds from selling the home in HK Dollars in Feb 23.  Let's say if I convert the proceeds into US Dollars in February 2024 (assume no currencies gain/loss as HKD and USD are pegged).  Then I further convert them into British Pounds in February 2025 while the USD have appreciated by 10% against GBP during the year (from Feb 2024 to Feb 2025) for buying a home in UK.  Do I need to pay "Capital Gains Tax" for such currency conversion in the tax reporting year 2024-25? Thank you.
Posted Mon, 17 Jul 2023 15:38:08 GMT by HMRC Admin 19

You will not need to pay for the currency conversion but you will need to declare the sale of the property as this occured when you were UK resident. You can see guidance here:

Tax when you sell property

Thank you.
Posted Tue, 28 May 2024 14:41:29 GMT by YF
Hello, After my relocation to the UK, I converted most of my savings into US Dollars (assuming no currency gain/loss as HKD and USD are pegged), as I think holding US Dollars is more convenient. Then, I further converted part of the US Dollars into British Pounds little by little at different times. Based on my understanding, I don't have to pay Capital Gains Tax (CGT) on gains from foreign currency conversions for personal use, as I am not using the converted funds for investment purposes. However, I am unsure if I am correct. Could you please confirm this? Thank you.
Posted Mon, 03 Jun 2024 11:13:06 GMT by HMRC Admin 32

If it is only for personal use there is no CGT due.

CG78315 - Foreign currency: personal expenditure of individuals

Thank you.

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