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Do I need to pay CGT on currency gain arising from foreign income when it is converted to GBP?

Posted Tue, 11 Jul 2023 16:45:00 GMT by
My family moved to the UK in August 2022 via the BN(O) Visa scheme. Since then, I have been employed by a company in Hong Kong as a contract staff by "working from home in the UK" and receive monthly income in HK Dollars. I understand I need to pay the Income Tax arising from this job and fill in the Self Assessment for Employment (SA102) accordingly. I used HMRC exchange rate each month to convert HKD to GBP and pay income tax accordingly. Let's say I convert these HK Dollar incomes to British Pound in March 2023 (HKD 9.5 to 1 GBP) in one-go. Some of the income as earned in some months (Jan-Feb 2023) have appreciated against GBP, while some months (Aug-Dec 2022) have depreciated against GBP. Do I need to report "Capital Gains Tax" in the reporting year 2022/23 for the currency gains arising from those income which has been appreciated in value as I convert to GBP in Feb 2023?
HMRC Admin 10 Response
Posted Fri, 14 Jul 2023 12:57:28 GMT by HMRC Admin 10 Response
Hi
No.
This will just be your normal earned income.
Thankyou.

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