Taxation of Chargeable Gains Act 1992 section 151Q

Purchase and resale arrangements where return in foreign currency

Section 151Q explains how chargeable gains calculations work when alternative finance return under purchase and resale arrangements is paid in a foreign currency, specifically for individuals (not companies) outside a trade or property business context.

• This section applies only where alternative finance return under purchase and resale arrangements is paid in a currency other than sterling
• It covers individuals and other non-corporate persons, but only where the arrangements are outside a trade, profession, vocation or property business
• The key gain or loss figures (the excess and appropriate amounts used in section 151P calculations) must be worked out in the foreign currency before any conversion to sterling
• Each payment of alternative finance return is then converted into sterling using the spot exchange rate on the day the payment is actually made