SE40033 - Emoluments paid in foreign currency

Emoluments chargeable under Cases I and II of Schedule E

If emoluments that are chargeable under Cases I and II of Schedule E are paid or payable in foreign currency the charge is unaffected. It is simply necessary to quantify the amount chargeable in pounds sterling.

The amount chargeable is strictly the sterling equivalent at the date the employee becomes entitled to be paid the emoluments or, if earlier, the date they are paid. This can be calculated using the relevant exchange rates in operation at the time.

No deduction can be given for costs of converting currency or for losses incurred on the exchange.

Emoluments chargeable under Cases III of Schedule E

For emoluments chargeable under Case III the conversion should be made at the date they were received in the United Kingdom. (See SE40301 for the meaning of “received in the United Kingdom”.)