USD Shares Capital gains with FX Gains/Losses

Dear Sir, I made transactions in US Stocks. The transaction path was like 1. GBP--> USD 2. USD used to purchase US stocks and multiple iterations of US Stock transactions 3. US Stocks sold 4. USD -->GBP Now on 2 & 3 there are capital gains, but on 1& 4 there are losses. however, there are no matching amounts/quantities so how do you suggest that i take care of the gains and corresponding taxes? Would it be fine if a use the exchange rates on the disposal days.

Hi,

All figures need to be in pounds sterling, to work out any gains or losses.

You have the sterling figure when converted to dollars(1) and the sterling figure when returned to sterling (4).  If 4 - 1 is a gain, this is taxable.  If it is a loss, then you can declare the loss on your tax return or in writing to HMRC.

Thank you.

there were mutliple instances of 1 can we use average cost to all of 2 and 4 above??

Hi ranjan.rao Rao,

No you need to use actual costs.

Thank you.