Income from Foreign Property...Awful Exchange rates!

Hi, I am trying to make a first declaration of foreign rental income. I realise that the self assessment needs to be completed in sterling. However if I look at the HMRC (monthly or annual) exchange rates, they are just awful compared to the real world. eg HMRC say 1.22 to US$ but if I take the US$ income to the Post office they want 1.47. There doesn't appear to me any way to SELL dollars for anything like 1.22. This means HMRC think I have 8196 pounds per $10,000. Whereas, if I take the same $10,000 to the Post Office I only get 6802 ie nearly £1400 less! If, at a later date, I need to pay capital Gains Tax, the sterling loss would (theoretically) be an order of magnitude worse. Am I missing something? Exchange rates are different in each direction. The HMRC exchange rate seems to me to be the £ selling rate rather than the £ buying rate. I'd like to get this both right and fair..... Any advice please.

Hi,

The SA notes for completion of Sa106 foreign income show that if you put any amounts on page F 2 and page F 3, you convert the income into UK pounds using the exchange rate at the time the income arose.

If you are not sure, ask your tax adviser or see here:

HMRC yearly average and spot rates

You should strictly use the exchange rate at the time the payment was made or failing that use the monthly exchange rate from the list. If you still disagree with these amounts you will need to contact us in writing.

Thank you.