Currency exchange – renting out your overseas home
How do you make sure you get a good currency exchange rate for money coming into the UK?
When you're considering how to manage your foreign currency, why not ask a currency exchange broker for help? An experienced and knowledgeable broker will be able to outline the options that are available to you if you regularly receive income from overseas, including:
Property rental income – although you may rent out your property to the UK market, where the funds can be paid directly into your account in UK Sterling, you may also be using an agent local to your property, who is collecting the rent in local currency. If you decide to keep this money in an overseas account, you won't have to worry about currency exchange differences – although you will still have to declare that income on your tax return as you are a UK resident. If, however, you choose to move the rental income back into the UK, you need to make sure that you lose as little as possible to currency exchange variations and charges.
How can a currency exchange broker help?
If you use a specialist currency broker, you can set up a regular payment and ask the broker to fix the currency exchange rate on a forward contract. This means that your money will be converted to UK Sterling at the agreed rate on the day the contract starts – even if your payments are coming into the country over a period of up to two years. This will protect you from negative changes in the currency exchange rate – but it's important to remember that you will also not benefit from positive changes to the rate. It will, however, let you plan ahead, because you'll know exactly what rate to apply to any payments coming into your UK bank account.
Foreign Currency Exchange Ltd is a commercial currency brokerage based in the UK. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money by getting a better currency exchange rate than your bank. The Foreign Currency Exchange buys currency at wholesale rates and can help you save money with our fast secure service. For more information contact us now, telephone +44 (0) 20 7989 0000 or email info@fcexchange.co.uk