Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sat, 02 Dec 2023 13:45:19 GMT by cross_entropy
Hi, if I have savings accounts in another country, in that country's currency, say X, and if, even with the interest rate, the pound sterling equivalent of money decreases (because of country's inflation and exchange rates), do I pay tax on this and how do I report this in self-assessment form? Example: If I have 20000 X equivalent to 10000 GBP, and the saving account yields 1000 X, which sums up to 21000 X at the end of the tax year; but the resulting amount is equivalent to 9000 GBP, do I need to pay tax on 1000 X earned?
Posted Wed, 06 Dec 2023 11:14:51 GMT by HMRC Admin 25
Hi cross_entropy,
You are taxed on your world-wide income in the UK, so you are required to delcare the interest in your overseas savings accounts.
You will need to convert to pounds sterling to declare in the tax return.
Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.
For your convenience, there are exchange rates at:
Exchange rates from HMRC in CSV and XML format
You can utilise an exchange rate from elsewhere.
Thank you. 

You must be signed in to post in this forum.