Taxation of Currency Gains

[fionn2011]

Hi

Just wondering if you open say a sterling account in belfast with 10K euro and it then appreciates to the equivalent of 12K euro (due to drop euro etc, or euro demise),is this treated as a capital gain etc? Is it only a tax issue when you actually withdraw the money?

If there is a tax issue, can you offset any gains against losses in irish bank shares ? (ie are currency gains offsetable against share losses?)

 

[Nige]

Yes, it is a chargeable gain but only when you realise that gain (ie withdraw the money). Such gains can be reduced by other capital losses brought forward from prior years or incurred in the same year.

 

[fionn2011]

Thank you for your very clear response