UK taxation on repatriated Euros?

Hi guys,

First of all....Hi, as a first-time poster. Hoping you can help me on this current issue

My query is whether or not I will need to pay UK tax on repatriated earnings from abroad.

I am a UK resident, living and working in UK

The money in question is in Euros, sitting in a Dutch bank account dating back to the 90's when I lived and worked in Holland for 4 years. I paid Dutch tax on these salary earnings at the time - and I declare the interest each year in my UK tax return and pay 40% on this.

If I choose to repatriate all the Euros to UK, will I be liable to any additional kind of tax on the capital? The current Euro/GBP exchange rate has moved considerably in recent months (approx. 25% in my favour), so would that be subject to CGT?

Grateful for your comments,

HAD

THe UK has a double-taxation agrement with Holland so if you have paid tax on the Euros there will be no further liability in UK. Unless their rate is less then you will be liable for the difference.
Gain on currency: Presumably if it was income from employment then I would think not.

Surely the Euro's appreciation against the pound giving you an added x% on exchange can't be considered capital gains?

I'm not an accountant but that would be staggering.

I guess if the HMRC caught you changing back and forth from £ to € every day, they'll say you were deliberately doing it to make a profit - but just once? No, I can't believe it.

ahardy66 said:

Surely the Euro's appreciation against the pound giving you an added x% on exchange can't be considered capital gains?

I'm not an accountant but that would be staggering.

I guess if the HMRC caught you changing back and forth from £ to € every day, they'll say you were deliberately doing it to make a profit - but just once? No, I can't believe it.

Click to expand...

I'd be staggered too - but have learned never to underestimate the IR's efforts to claim my money as theirs. For example, because my wife is Dutch. ...if I die before she's been resident in UK for 18 of the previous 20 years, then IR will clobber her for IHT on my estate. How staggering is that?

Another (hopefully risk-free) option regarding the Euros, could be to leave them where they are...and wait until UK joins the Eurozone. Some are predicting this wont be too far away.

Thanks for all responses so far