YM Ying

Hi, Thanks for the earlier concise note. As a follow up question - will the intended transfers back and forth and related foreign currency conversion (still of the same principal USD amount so originated from my UK bank account) during the process be “tainted” if I use my spouse’s overseas bank account facilities to do the conversion (to save me cumbersome and lengthy procedures opening a new overseas bank account just to do one or two FX conversions) while the GBP so converted will then be remitted back to my UK bank account? By “tainted” I’m worrying about tainting the GBP so converted, via my spouse’s overseas account and remitted back to me, as my income? or tainting the GBP back to the UK as my spouse’s income in disguise rather ?

I’m having some USD idle in a UK bank account and intend to transfer to either my own (or my spouse’s) overseas bank to carry out conversion into Sterling pounds (to take advantage of better exchange rate) and then remit some or exactly the full amount so converted back to my UK bank account. All transfers and conversions will be fully recorded in the respective bank accounts’ records. Will the principal sum as converted under this series of transfers (and possibly between my and my spouse’s bank accounts overseas) and transfer back to the UK then be treated as income and be required to be included in the self-assessment return ? Any interest earnings that may arise in the interim I understand will be treated as income and need to be reported if the aggregated sum with others exceeds the relevant allowances.