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  • Capital gain tax on foreign property calculations

    Dear HMRC I am a UK tax resident since April 2008. I bought a foreign property in 2004 which I sold in 2022. I understand I am liable for capital gain here in the UK. I am after a few clarifications regarding how to calculate the gain: - When calculating the gain in Euros (the property was in Belgium), the gain adds up to to less than 100k EUR. When calculating in GBP equivalent (i.e., difference between sale price and purchase price and capital allowances at the exchange rate of the time) I end up with a £150k. As I see it, exchange rate differentials result in an additional gain and this strikes me as unfair. Can you please confirm that I need to convert the sale price, purchase price and deductible expenses at the exchange rate of the time they were incurred? Relatedly, can I not simply calculate the capital gain in Euros and apply the actual exchange rate of the time the gain was made (i.e. data of the sale price); - Are there any deductions/allowances that can be made for the period I owned the property and was not UK tax resident (i.e. 2004 to 2008)? Thanks 

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  • RE: US Share Certificate of Deposit / Share Certificate

    Thank you, much appreciated!
  • US Share Certificate of Deposit / Share Certificate

    Dear HMRC I have recently invested some of my savings in a "Share Certificate” offered by my US Credit Union. These are guaranteed fixed interest rate savings instruments offered by US credit unions (I read online that when offered by traditional banks they go by the name of “Certificate Deposits"). In my case the investment is for 10 years, the interest is credited quarterly into the Share Certificate account, but there are heavy penalties for early withdrawals (36 months of interest, “The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividends have already been paid, the penalty will be deducted from the principal.”) If I were taxed in the US, I understand these would be taxed as interest income and taxable for each year interest is gained How should these be treated for self-assessment purposes in the UK? - Should I declare these are “foreign interest” income? - Should I declare interest on an annual basis? Or should I declare interest income only at the end of the 10 year term when I can access them without penalties? Thanks Matteo

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