nelk24

Hi Team, I invested in the bond directly NOT through offshore funds. I just want to know if there is consent fee/incentive fee for a foreign corporate bond restructuring, is that taxable under UK taxation system And if the bond was sold or matured to a higher price than the purchase price, it will be treated as capital gain, right? Please stop refer me to the guidance at HS265 Offshore funds as I restate that I invested into the corporate bonds not the offshore funds

I came across 20% finance cost as tax relief for residential landlord, it should be applicable in my case, right?

My property is a residential apartment in Japan, but I bought it and let it out for rental income (i.e. I don't use it for my residential uses). Does it count as non-residential let property?

Hi HMRC team, After looking into the manual for some time, it is too many material and very confusing to understand. Could you please advise if I took out a mortgage loan to finance my oversea property (which is rent out), is the loan interests payment an allowable property property business expense? Thank you

Hi Team, I invested in foreign corporate bond directly, not via some ETF, unit trust or offshore fund. Could you address my questions directly? 1) if I purchased the bond below its issued price (not issued below par i.e. this is not a deeply discounted securities), and it is redeemed/called at a higher than purchase price. This should count as capital gain, right? (and as a capital loss if purchased above the issued price) 2) If there is any consent fee/incentive fee for a restructuring of the bond terms, are these taxable under UK taxation system?

Hello, Thanks for the answer on question 1 and 3. For the question 2, since you provided monthly exchange rate and average exchange rate for last twelve months, does it mean I only convert the saving interests, coupon interests from foreign bonds, dividend from non-UK company stocks into GBP using the relevant monthly exchange rate for the transactions? i.e. I received the coupon interest on 17 Feb 2024 and I would use the Feb 2024 monthly exchange rate to convert it into GBP, right?

Hello, I understand the S104 holding now. What about the FX effect when I invest in foreign securities? Should I convert the FX amount into GBP amount whenever there is transactions for the cost and gains? Or should I just convert the foreign amount gains into GBP amount at the end of calculation? And please advise what FX rate I shall use? Is there a reference rate I could use from HMRC website or any reliable sources (international banks, Bloomberg, brokerage firms) are acceptable?

Hello, The bond concerned are foreign corporate bonds. And they are not issued below par, they just traded lower than the issued price, so I don't think they count as deeply discounted securities. If in such case, the difference between purchase and redemption price will be taxed as capital gains, right? And for the consent fee/incentive offered when there is restructuring of the bond terms, are these taxable? If so, should it be capital gains or income?

I purchased a bond below par (i.e. below the redeem value at maturity). When the bond is matured, redeemed or called at a higher price than my purchase price. Does this count as capital gain(or loss if I paid above par) or if is it taxable at all? And when bond was restructured and/or got tender offered, there is sometime a consent fee/incentive offered. Is this consent fee taxable? If so, should it be income or capital gains?

For capital gain tax calculation, what should be the purchase price used if I only sell partially of my holding position? Would it be weighted average price or using FIFO method (First in First Out)? If weighted average price is used, how should I calculate the average price for non-GBP stocks and investment with FX effect? For example If I buy 100 shares of A stock at USD 10 dollar ( GBP to USD at 1.25) and buy another 100 shares of A stock at USD 11 dollar (GBP to USD at 1.23). Later, I sell 50 shares of A stock at USD 11 dollar (GBP to USD at 1.2) Should I use A or B to calculate the Capital Gains? A) Capital Gains = USD 11-(USD10*100shares+USD11*100shares)/200shares= USD 0.5 * 50 shares * 1.2 (FX rate) = GBP 30 OR B) Capital Gains = USD11*50shares*1.2(FX rate)-(USD10*100shares*1.25(FX rate)+USD11*100shares*1.23(FX rate))/200shares*50shares = 660-650.75 = GBP 9.25