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Posted Tue, 10 Oct 2023 10:16:36 GMT by KF@2023
Dear Sir/Madam, I needed to exchange USD to GBP so support my living expenses in UK. I used a stock trader platform to conduct currency exchange transactions then moved away money from trader platform to a local UK bank.Please kindly help clarify my queries on whether I need to report capital gain/loss for the said activities. Pls see my example below: My Situation: (Activity 1) I exchanged USD to get 100GBP at a trader platform on April 10, 2022, then: (Activity 2) I transferred out 20GBP to a UK bank on May 5, 2022 and got a profit “gain” of 3GBP, simply due to rise in USD value then; (Activity 3) I transferred out the remaining 80GBP to a UK bank on March 30, 2023 and recorded a profit “loss” of 10GBP, simply due to fall in USD value (To sum up my capital gain/loss over the entire 2022-23 tax year, I experienced a capital loss totaling 7GBP!) My queries: I cannot tell whether the above activities are subject to Capital Gain Tax, if yes, (A) How should I report the “realized gain”? By single entry transaction on exact date or by lump sum gains over the entire tax year ( have many transactions in a year at different dates)? And how should I report those losses? Can total gains be offset against total losses? (B) What is the charge rate in a low income tax band? Where should I report these figures on a tax return form? Appreciate your guidance and advice. Many thanks and cheers
Posted Mon, 16 Oct 2023 12:17:51 GMT by KF@2023
Dear Sir/Madam, Any feedback on the above? Since tax return deadline is approaching, would like to hear your guidance . Best regards and thanks.
Posted Mon, 16 Oct 2023 12:50:42 GMT by KF@2023
Dear Sir/Madam, No need to reply on this thread as I have got an answer already. Sorry to disturb you. Cheers
Posted Tue, 17 Oct 2023 07:12:03 GMT by HMRC Admin 19

No, there are no tax implications from the exchange of currency for an individual, unless you are doing this as a trade, in which case you would be deemed as self employed and the gains treated a profits of self employment and subject to Income Tax.

Thank you.

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