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Posted Fri, 15 Dec 2023 00:30:47 GMT by Foggy
Hi, I currently have a UK brokerage account which allows me to trade on the US Stock Market. This year the account now pays interest on cash held in both £ and $. 1. How can I calculate the £ value of the interest paid in $US? I am using the exchange rate at 5PM on the date the interest is paid into my account to give me a figure in £, Is this ok? 2. For calculating if any tax is due, do I then add the two amounts of interest together to give the total amount of interest earned? 3. Is it feasible to assume the brokerage firm will notify HMRC of these figures making points 1 and 2 above irrelevant. 4. Will the above also apply to dividends from US stocks paid into my account in $US, ie the exchange rate at 5PM on the day the dividend is paid into my account. Thank you
Posted Tue, 19 Dec 2023 15:42:21 GMT by HMRC Admin 5 Response
Hi

Under the terms of Self Assessment, we do not provide an official exchange rate and the onus is on the individual to use a just and reasonable exchange rate for each acquisition and disposal.  
For your convenience, there are exchange rates at https://webarchive.nationalarchives.gov.uk/ukgwa/20231016190054/ and
Exchange rates from HMRC in CSV and XML format.  
You are free to use any of the supplied rates or one of your own choosing.  This should answer questions 1, 2 and 4.  
It is up to you to declare the interests on your tax return.
Foreign interest is added to UK interest in the self assessment calculation and the appropriate tax free rate applied, with that taxable amount charged to tax at the relevant rate.

Thank you

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