Currency Exchange – your tax responsibilities

Whenever money is involved, tax isn't far behind. Even when you think you're making tax-free investments overseas, you'll still be liable for UK tax if you live here most of the time – and you may have to pay tax if you're living overseas as well. Converting your money into foreign currency doesn't make you immune from the tax laws, so it's important that you know what your responsibilities are.

Getting currency exchange tax help

Ignorance of the law will not save you from having to pay back the tax that you owe plus a penalty if you are found to have left some of your money undeclared. If you move abroad and then sell your UK home, for example, you may find that the profits from the sale are subject to tax in your new country – or even in both countries, depending on your circumstances. You need to investigate the tax rules both at home and abroad to make sure that the currency exchange transactions you're making aren't attracting additional taxes that you don't want to pay. You could:

• 
  
  Talk to your currency exchange broker – a broker with many years of experience in the field will be able to talk to you about your tax responsibilities, including who you have to inform about your currency exchange deal and when.


• 
  
  Speak to a tax adviser – a specialist tax adviser will have all the technical knowledge to help you understand why certain taxes are payable and when. They might also be able to help you to keep your tax burden down.


• 
  
  Find an overseas tax adviser – if you are going to be living abroad, it might be wise to find a local tax adviser. They will be up-to-date on all the local tax laws and, if you're going to a popular area, will have helped many other UK ex-pats before.


• 
  
  Talk to the tax office – your local tax office may be able to help and you will have shown that you are willing to learn about how your single currency exchange transaction or regular payments may attract tax.

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