Tax on gains vs currency swing

[Marshy1998]

Hi

Just joined your forum, im quite new to trading, opened a eToro account a couple of months ago, i Have a question regarding tax in the uk.

I deposited £10,000 into my eToro account at a exchange rate of 1.21, $12,100

I have now made approx $600 but the exchange rate has now changed to 1.28 so in real terms I’m at a loss if I withdrew the $12,700

Can you off set currency changes against my tax liability on the $600 gain ?

Many thanks

Paul

 

[malaguti]

Hi

Just joined your forum, im quite new to trading, opened a eToro account a couple of months ago, i Have a question regarding tax in the uk.

I deposited £10,000 into my eToro account at a exchange rate of 1.21, $12,100

I have now made approx $600 but the exchange rate has now changed to 1.28 so in real terms I’m at a loss if I withdrew the $12,700

Can you off set currency changes against my tax liability on the $600 gain ?

Many thanks

Paul

Nope, its the sterling equivalent of your disposal minus the sterling equivalent of acquisition

 

[pezza55]

Nope, its the sterling equivalent of your disposal minus the sterling equivalent of acquisition

thats the issue when you are moving currency the rate changes as we all know thats why we are here!