Foreign property income

We receive a small amount of rental income when we rent out our spanish holiday home for apx 60 days. all rent received is paid into a spanish bank account and we never transfer any to a british account leaving it in spain to pay expenses of the house. we pay spanish tax on this. When working out any profit in order to complete the foreign income section on our SA return, what HMRC exchange rates do I use? Can I use the yearly average one as at Mar 23 for all income and expenses received during the 22/23 tax year or do i have to convert each income received and expense paid at that months exchange rate? Eg Rent received from a let in July 23 exchanged at the July rate, then rent received from a let in August done at the Monthly Aug rate, any cleaning expense incurred in Aug exchanged at the Aug Rate? I would be very pleased to receive any guidance. Thank you

Hi ,
 

Thank you for your question.  When converting from a foreign currency to pounds use the official rate of exchange at the time of the exchange, you can use the yearly rate, monthly rate or spot rate.  Official exchange rates can be found at : HMRC monthly currency exchange rates  . Thank you .

But when is the ‘time of exchange’ as we never actually exchange any of it into pounds! We also do not receive any euros from our Spanish rental agent until the end of the season in September or October so would that then be the ‘time of exchange’ or is it when they received the rent in say July? I just want to ensure that I do this correctly. Many thanks.

Hi Lady In Red,
Thank you for your further question.
As previosly stated you would be entitled to use the exchange rate at either the time the rent was paid in July or the date you actually received the income (September or October).
Either exchange rate would be acceptable. 
Thank you.