Tax on currency fluctuation

myhouse_2

I am formulating a plan of leaving the UK to live abroad.
My idea is to wait till exchange rates are very favourable, exchange all my money into the foreign currency. I would then live in that country for a few years till things swing the other way and send my money back to the UK at a healthy profit.
My question is simply, are there any UK taxes (e.g. capital gains) to consider in this case.

uknick

I suppose the answer will depend on which country you are resident in for tax purposes when you make the profit and what their tax laws are.

Keep_pedalling

Frankly the idea of holding your savings in cash and hoping for a favourable swing in exchange rates is a high risk gamble.

agrinnall

What happens if the exchange rate is never favourable enough to allow you to move to a foreign country (and why would that country allow you to live there anyway)? And even if the currency moves the way you want it to, what makes you think it will move back in the other direction at a time that suits you, if ever? It's one of the most hare-brained schemes I've ever heard of.

myhouse_2

Thanks all.

In terms of tax, I'd transfer my money abroad but that wouldn't represent a profit (though it would increase my buying power in that country significantly.) The only actual profit would be when I moved back to the UK. Not sure which country I'd be a tax payer in - I would imagine the foreign country up until I sent the money home, then I'd follow the money back to the UK.
The main question still is would that be taxable - it'd be profit made over several years but crystalized at the moment of sending the money home. It might be in housing or other assets up until the moment of turning it into cash and sending it home.


It's not as hare-brained as it might appear from the limited info I gave. Moving to the other country is not a problem, long-term residency and employment is not a problem. The timing of currency fluctuations is obviously an issue, but the chances are reasonably good that it'll happen. If not then I stay put and no harm done (whichever country I'm in).
I wouldn't be holding in cash either (which is another potential but not unsolvable issue).