Taxation of Chargeable Gains Act 1992 section 252

Foreign currency bank accounts

Section 252 restricts the capital gains tax exemption for debts to ensure that only individuals, trustees and personal representatives can benefit from the exemption when it comes to foreign currency bank accounts.

• Under the general rule in section 251, gains on debts (including bank account balances) are normally exempt from capital gains tax.
• Section 252 limits this exemption for foreign currency bank accounts so that only individuals, trustees of settlements and personal representatives of deceased persons qualify.
• A "foreign currency debt" is defined as a credit balance held in a bank account denominated in a currency other than sterling.
• Other persons, such as companies, cannot rely on the section 251 exemption for gains arising on foreign currency bank accounts.