14 Apr 2016

A question about : Capital gains tax: Foreign assets and immigration

Hi,

I just got a headache trying to understand the rules about capital gains tax and foreign assets. I moved to the UK in 2012, after living and working in Canada and the Eurozone. I have savings in both these countries. I now want to buy a home here, so I'll have to dispose of my foreign assets, and not remitting income is not an option. How do I have to work out CGT for the following assets:
Cash (i.e. EUR/CAD sitting in a bank account - and not doing enough work anyway).
It's kind of obvious to take the spot rate as the disposal cost, but what is the acquisition rate? I earned this money over a long time (some of it in a currency that no longer exists); do I have to take the spot rate for every single Euro or C$ on the day I earned it? Or can I take the spot rate at immigration to the UK.
Can I claim transferwise costs or any other currency exchange/fund transfer costs as expenses?
Investment fund shares/shares (they've been doing a fair share of work).
I fear I have to track down every single purchase, find the spot rate, convert it to GBP, and then do the same with sales. Is this correct?
The sales proceeds go to my EUR bank account, and may sit around there for a while. This is then a new purchase of a foreign currency, which may again be liable for CGT (at the current EUR/GBP trend, it's going to be a loss - do I wish I had transferred the money a while ago). Correct?
This is turning into my personal accounting nightmare, and I'd greatly appreciate any info that you moneysavers can offer.

Cheers!

Best answers:

  • OK, so after just over half an hour in the HMRC hotline, I now have at least a partial answer (from Ian, 3:15pm today): Foreign savings accounts are exempt from CGT after immigration to UK. That would halve my problem, and I can now look at my shares in more detail.
  • HMRC staff are not trained to answer these kind of tax planning questions.
    Foreign currency gains are not taxable. With investments you will need to go back and calculate each gain or loss in Sterling using spot exchange rates; it sounds however is if you will have some OIGs which could be a problem.
    Have you claimed the remittance basis since you moved here? If so, have you made a 16ZA election for capital losses?
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