exchange rate used for Capital gain tax 22/23

Hi, I have purchased and sold some US shares from April 2022 to March 2023 with sales proceeds in USD. Can I use any of the following exchange rates method to calculate the capital gain/ loss for all the transactions during that period? 1. HMRC exchange rates for 2022 - monthly (the month when the purchase/ sell transaction occurred) 2. HMRC yearly average to 31 Dec 2022 (which was GBP:USD 1.249458) 3. HMRC year average for the year to 31 Mar 2023 (not yet post in HMRC) Thanks!

Hi,
 

The official exchange rates can be found at: Exchange rates from HMRC in CSV and XML format .  You are free to use the annual average, monthly rate or spot rate to convert from USD to GBP.  You will already have the GBP value before converting to USD  .  All parts of the capital gains calculation must be in pounds sterling, using the choice of exchange rates in place, when buying and selling.

Thank you.

Hi, In order to simplify my CGT calculations, I will not prefer to use monthly or spot rates. My understanding is that I can either use the “average annual 2022 Dec” or “average annual 2023 Mar” for all the calculations involving buy or sell. Is that right? Thanks!

Hi,

That is correct. You can see further guidance here:

Exchange rates from HMRC in CSV and XML format

Thank you.

Hi, Could I clarify a couple of points on this: 1. How are the exchange rates you have linked calculated - they are not averages by the looks of it and I can't see what the fixing is? 2. From what you have said we do not need to use these - we could use our own fixing or monthly average if we document this appropriately against the exchange rates? Thanks

Hi Cooperbb,

As per this link:
Exchange rates from HMRC in CSV and XML format
There is an average. if you are using your own, yes you would need to supply evidence.
Thank you. 
 

Is it possible to use the actual rate received when converting foreign capital gains into GBP? How should this be accounted? Currently, I have used the HMRC's average monthly rate to provide a GBP value for the sale of some foreign shares (into a foreign bank account) and then documented the difference between these rates and the actual GBP received (after transferring to the UK) as a cost that is deducted from my capital gain. Is this OK? Or should I just use the actual rates received?

Hi John Smith,
You can use either. 
Thank you.