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Posted Mon, 04 Oct 2021 20:03:58 GMT by Ian A
In computing Capital Gains and Losses for shares both acquired and disposed of in USD, the HMRC guidance seems to be as follows: - disposal proceeds in GBP less acquisition costs in GBP - disposal proceeds should be converted to GBP at the USD/GBP exchange rate at time of disposal - acquisition proceeds to be converted to GBP at the USD/GBP exchange rate at time of acquisition However I need clarification on computation of GBP acquisition costs for shares that were bought about 10 years BEFORE I became resident in the U.K. In this circumstance, using the computation above redefines “real / actual losses” I experienced in USD to “implied profits” in GBP as the UK’s GBP has significantly weakened against the USD over the last 10 years. It seems strange to pay taxes to the HMRC on (1) actual loss positions accumulated over 10 years prior to my U.K. residency, which have now been converted to profit and (2) large inflated gains in GBP for small profit positions in USD also accumulated for 10 years prior to my U.K. residence….these exposures emanating as a consequence of currency devaluation over a 10 year period in which I had absolutely no dealings in / with the U.K. or any intentions of taking up residency in the U.K. Could you confirm if I can calculate my share acquisition costs using USD / GBP exchange rates as at the time when I became resident in the U.K. as this matches my exposure to the devaluation of GBP regarding my tax obligations to the actual period I had dealing with and in the U.K.?
Posted Tue, 05 Oct 2021 08:50:06 GMT by HMRC Admin 17

The acquisition cost of the shares is the sterling equivalent of the dollars given at the exchange rate in force at the date of acquisition of the share.

There is no relief for non-residence :

Capital Gains Manual  .

Thank you.

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