As readers will be aware Finance Act 2008 made a number of changes to the remittance basis tax rules and to the tax residence rules. A summary of the changes can be accessed here. HMRC has issued several guidance notes on the implications of the changes, and readers can access the guidance through this link.
Some of the more recent additions to the guidance notes relate to foreign currency bank accounts and the remittance basis, and the treatment of gains and losses on foreign currency bank accounts held by remittance basis users.
The former note has been issued in response to concerns expressed by taxpayers and practitioners regarding the difficulties in completing Self Assessment returns because of the need to establish the gains and losses which arise on movements from overseas bank accounts held in currencies other than sterling. The guidance can be accessed here.
With regard to the latter, as readers will already be aware in December 2009 the Financial Secretary to the Treasury announced proposals to include legislation in Finance Bill 2010 to prevent certain capital gains tax losses from transactions on foreign currency bank accounts. HMRC has now published a technical note which gives details about how the new rules will work