Changes to the Capital Gains Tax Rules Relating to Losses which Arise from Transactions of Foreign Currency Bank Accounts
The Financial Secretary to the Treasury has announced the Government's intention to change the capital gains tax rules as part of Finance Bill 2010. The changes, which cam into effect from 16 December 2009, are designed to prevent the creation of capital gains tax losses which arise in certain circumstances from transactions of foreign currency bank accounts.
The changes affect individuals who are liable to tax on their foreign income and gains on the remittance basis and arise from the fact that HMRC have found that the current rules create losses that are in excess of any real loss which the individual incurs.