Capital Gain -- Futures Contracts -- Foreign Currency Denominated

Good morning, I understand that the capital gains tax for a futures contract listed on an approved exchange is equal to the difference between the final account balance and the opening deposit (CG56101), To calculate the CGT when a futures contract is denominated in a foreign currency (say, USD) does one: (i) calculate the difference between the final balance and initial deposit (in USD) and then convert that amount into GBP at the exchange rate in effect on the date the position is closed; or (ii) convert each USD amount (i.e. the initial deposit, any interest due, any dividends received, etc.) used in the calculation of the final balance into GBP at the exchange rate prevailing when that amount was paid/received and then calculate the CGT as set out in the worked examples in CG56101? Many thanks.

Hi,

Calculating the CGT by using the first of the two proposed methods would be quite acceptable.

Thank you.