Capital gains tax and currency conversion fees

mrodent33

Hello,

I have a couple of GIAs (unsheltered investment accounts).

Over recent months I've been learning slowly how capital gains tax works in the UK.

A few months ago I bought some BRK.B in a GIA. Obviously this is a US stock. It was for quite a lot of money and I've just realised that the platform (Trading 212) charged £58.66 as a "currency conversion fee". It happens.

The question is, how do such conversion charges play into the capital gains liabilities calculations? My understanding is that "transaction charges" are deductible from the figure of a gain realised. I'm not sure how they are applied, if at all, when you purchase stock.

So: 1) on purchasing some stock, what effect if any does a currency conversion charge have? I.e. how if at all should I include this in my capital gains calculations?

2) on selling some stock, what effect if any does a currency conversion charge have for the "deductible charges"? I.e. how if at all should I include this in my capital gains calculations?

Thanks!

poseidon1

Answers are:

1 ) Conversion charge added to cost of purchase of the stock.

2) On sale the charge is an allowable deduction against the sale proceeds.

mrodent33

Helpful, thanks