FX Dealing - CGT liability?

[anonymous-user]

A friend of mine coverted a large sum of money into Euros from Sterling 3 months ago, if he now converts this he will make a gain of £25k.

Is this gain subject to CGT? From memory I think that it is excempt but cannot be sure.

Anyone?

[Legend83]

The "realised" gain will be subject to CGT.

http://www.hmrc.gov.uk/manuals/cg4manual/cg78300.h...

Any "movement" in the rate is not taxed until he sells the currency.

Edited to add - what he said below.

Edited by Legend83 on Wednesday 3rd December 15:54

[barney123]

MRSNEAK said:

A friend of mine coverted a large sum of money into Euros from Sterling 3 months ago, if he now converts this he will make a gain of £25k.

Is this gain subject to CGT? From memory I think that it is excempt but cannot be sure.

Anyone?

Tell him to sell an amount which would realise £9000 profit (or whatever the threshold is) and another after April, then he wont pay anything on that (assuming he has not any other CGT due).

[2something]

In the meantime you might be able to the flatten the risk using forwards or spread betting. Using a spread bet to put the position on the first place would have probably avoided this problem.