Foreign Currency

ivormonee

I found the two statements, "the interest is less than 1 % but tax free" and "account pays no interest", to convey two different scenarios, but yes, as you have clarified that there is no interest, then there is nothing to be taxed. The notion of a double tax agreement seems irrelevant as that is a mechanism for ensuring that the tax you do pay is not levied twice, in simple terms.

Although I understand you no longer require the foreign currency, it's not clear what converting it to another foreign currency such as USD would achieve.If you wanted to retain cash and benefit from interest on it then converting it to GBP would achieve that option.