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Posted Fri, 24 Sep 2021 16:59:58 GMT by Ian A
How are gains and losses to be computed on trades relating to Forex Contract for Difference in a USD denominated trading account? For example if I opened up a 100,000 unit GBPUSD CFD position at 1.275 and then later closed that position at 1.375 resulting in a loss of 0.100 for each unit within the CFD contract i.e. a $10,000 gain on the transaction. However, if I apply the prescribed HMRC gain/loss computation methodology and convert the cost basis to GBP at the time I opened the position...and proceeds to GBP at the time i closed the position, then I end up with GBP 0 in gains and losses. In fact all gains and losses on all GBP forex pair CFDs will be effectively nilled out. Please advise om how to handle Forex CFD gains and losses?
Posted Mon, 27 Sep 2021 14:56:48 GMT by HMRC Admin 19

Current guidance on cryptocurrencies and their relation to Capital Gains can be found here:

Cryptoassets Manual

More complex areas such as the Forex trading are currently in disucussions and updated guidance will be posted as soon as the discussions are finished. 

Thank you.

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