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GARY HEYNES and SARAH TURGOOSE warn of the UK tax effect of currency exchange movements
KEY POINTS
- Currency conversion can cause problems.
- Exchange rate movements.
- The effect of new rules for non-doms.
- The impact of TCGA 1992 rules.
- Acquisition and disposal events.
If you have recently started to book your summer holidays it will have hit home how expensive continental Europe and the Americas have become since sterling started its downward trend last year.
So if you are deciding to stay home instead you may take the time to think about some of your clients who have assets or currency overseas – the falling value of sterling could well have an unexpected bearing on their tax returns for 2008-09.
Foreign assets
In relation to foreign assets UK capital gains tax is calculated on the difference between the sterling values on acquisition and disposal.
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