Question about overseas currency

Hello! Last year I arrived in the UK on a BNO visa and have since become a tax resident. Let's say I have HKD 100,000. If I convert it to USD and deposit it to preserve its value, I'll report the interest income to HMRC. If, after several months or years, I need to convert this USD to GBP for living expenses or to buy property. Would the conversion from HKD to USD, and then from USD to GBP, be subject to income tax, capital gains tax (CGT), or considered capital gains? Besides interest income, would I be liable for any other taxes? Thank you very much!

Hi DavidCheung89,
Currency other than sterling is a chargeable asset and its disposal can give rise to a chargeable gain or an allowable loss.
Please have a look at the guidance here CG78300 onwards:
CG78300 - Foreign currency: introduction.
Thank you. 

Hello, Thank you for your response. I'm still seeking clarification on the following points: In regards to the conversion from HKD to USD, and then from USD to GBP, aside from the interest tax generated from my USD deposit, are there any other taxes I need to pay? Does it mean that any differences generated during the conversion process of the three currencies, regardless of the amount, are subject to taxation? If so, which type of tax would it be? Would it involve taxing the principal amount as well, or only the differences? Furthermore, if I were to travel abroad in the future and exchange currencies, such as Euros, would the difference in exchange rates also be taxable? I would greatly appreciate your clarification on these matters. Thank you.

Hello,Could you please kindly reply to my previous questions? We still feeling so confused about it. Thank you so much.

Hi,

If it is for personal use only, then no tax is due. You can see guidance here:

CG78315 - Foreign currency: personal expenditure of individuals

Thank you.