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I have a somewhat complex tax question related to forex transactions and moving to a different country. Here's the scenario:

I'm a UK resident, and I sold GBP to buy USD in order to purchase American stocks. I plan on holding these stocks for a long time, possibly 30 years. Now, let's say that after 30 years, I decide to sell the stocks and the USD to buy back into another currency. However, instead of moving back into GBP, I move into CHF because I've since moved and become a resident of Switzerland.

How would the taxation work on this currency exchange? I understand that in most cases, one would owe tax on any gain or loss realised from the currency exchange when you sell the USD to buy back into the original currency. But in this case, I'm buying into a different currency than I started with (CHF instead of GBP).

Does anyone have experience with this kind of scenario or have insights on how this might work from a tax perspective? Any advice would be greatly appreciated!

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  • That has enough moving parts that I'd suggest paying for a pro's advice may cost less than taking the Internet's advice...
    – keshlam
    Jul 17, 2023 at 19:06
  • It's more an intellectual curiosity for now, but if I really move abroad I will certainly get also pro advice. Jul 17, 2023 at 20:09
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    Does this help? The real answer would depend on the specific countries involved and the current laws at the time of the transaction.
    – littleadv
    Jul 17, 2023 at 22:04
  • Fwiw, currency doesn't necessarily affect taxation in most countries. What tends to matter is where you are, where you're a tax resident, and where the transaction take place/gets booked.
    – user68318
    Aug 12, 2023 at 2:21

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