Currency Exchange (gain and loss)

Dear Sir/Madam, I am not so sure whether I have to report a gain /loss under currency exchange process. I did currency exchange via a trader platform (not a bank) and then transfer money to a local UK Bank. As we may be aware, currency exchange rate keep on changing minute-to-minute. There may be a gain/loss when I move away money from one institution to another institution. Please see below example: I spent 10USD in exchange for 8GBP at a time. Then by the time I move out money, the 8GBP is now cost 10.8USD (due to changes in exchange rate). I simply move out the 8GBP to a banking account but there is capital gain of 0.8USD in my transaction record. In this case, do I have to report the 0.8USD as a “capital gain” in my tax return? More, is there any tax allowance for capital gain? Appreciate your guidance and advice. Thanks and cheers

Hi,

If the currency exchange was for personal use there is no gain to report. If you are actually trading currency then this would be capital gains. Tax would be due on any gain for 2023 to 2024 over £6000

Thank you.

Dear Sir/Madam, Thanks a million for your advice and guidance. Have a nice day. Cheers

Dear sirs, I bought 100000 gbp by @1.23 usd for buying property. But the deal failed, and now I exchange the gbp back to usd by @1.26. By usd, I gain 3000 usd but by gbp, I gain zero. How do I report the CGT?

Hi edmund

There is no gain on this as it is for personal use -CG78315 - Foreign currency: personal expenditure of individuals

Thank you