Taxation of Chargeable Gains Act 1992 section 269

Foreign currency for personal expenditure

Section 269 exempts from capital gains tax any gain arising when an individual disposes of foreign currency that was acquired for personal spending outside the United Kingdom.

• A gain on the disposal of foreign currency by an individual is not a chargeable gain if the currency was acquired for personal expenditure outside the UK by the individual, their family, or their dependants.
• Personal expenditure includes spending on providing or maintaining a residence outside the UK.
• The exemption applies only to currency specifically purchased for personal overseas spending — it does not cover foreign currency received as salary, interest, dividends, or other income.
• Where foreign currency is received as remuneration or investment income rather than bought for a specific personal purpose, any gain or loss on its disposal is calculated and taxed in the normal way.