Geoff Craig

Over the course of my employment, domiciled in the UK, but working for a US bank. I received US shares as part of my renumeration, which was taxed at source for UK income tax purposes. Over time (>10 years), I have sold these shares and reported CGT in the normal way, by converting to GBP at the prevailing rate. Dividend income and interest has been reported as usual. My question is; I have not physically converted the USD proceeds into GBP because I continue to make personal investments in USD. I therefore hold a USD cash balance in this account. Based on HMRC handbook CG78321 (see below), am I correct in my assumption that the physical conversion of this USD balance into GBP is considered a 'simple debt' and does not give rise to chargeable gains/losses. CG78321 - Foreign currency: foreign currency bank accounts - periods from 6 April 2012 From 6 April 2012 the treatment of foreign currency bank accounts was significantly simplified. From that date the treatment of foreign currency bank accounts for individuals, trustees and personal representatives (including members of a partnership) were aligned with the treatment of ‘simple debts’. ‘Simple debts’ will not give rise to chargeable gains (or allowable losses) in the hands of the original creditor. The changes made from 6 April 2012 do not apply to foreign currency for which the existing rules continue to apply see CG78300+. The changes to the treatment of foreign currency bank accounts from 6 April 2012 does not affect the tax treatment of any other type of currency-related asset, such as options, futures or other types of investment that are not foreign currency bank accounts.

Hi, I have received a cash payment in lieu of a cash dividend due to on US stock on loan from my brokerage account. How is it taxed? A normal US dividend would be taxed at 15% (assuming w8-ben in place) and a maximum 15% tax credit relief claimed. Where should this gain be reported? Ty!