CG78315 - Currency: personal expenditure of individuals

TCGA92/S269

A gain on the disposal of currency acquired by INDIVIDUALS for the personal expenditure outside the United Kingdom of themselves and their family or dependents is not a chargeable gain. This includes expenditure on the provision or maintenance of a residence outside the United Kingdom.

TCGA92/S269 applies only to currency which was specifically acquired for personal expenditure of this kind. If remuneration, interest, dividends or other sums are received in foreign currency, that currency was not acquired for the purposes specified in Section 269. On the disposal of such currency, there will be a chargeable gain (or allowable loss) calculated in the normal way. The allowable costs being the sterling value of the currency on the date it is acquired. The receipts may have suffered Income Tax, but TCGA92/S37 (1) (exclusion of sums chargeable to Income Tax, see CG14300+) will not operate to reduce the disposal consideration.