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 is an Annual rate, a spot rate and a monthly rate at
UK Government Web Archive/and
Exchange rates from HMRC in CSV and XML format.
You are free to choose any of those rates or a rate from another source, such as the London Stock Exchange. The dividend can be treated as from the USA.
US government bonds, sometimes known as T-bills or treasury bills are generally taxed as income rather than capital gains. The return is paid at maturity rather than regular interest payments.
In the UK, these are known as deeply discounted securities, with the discount being the difference between the price at which they were issued and the price received at maturity.
On a foreign investment the income is the difference between the purchase and redemption price after each has been converted to sterling on the day the transactions took place, so includes any foreign exchange gains.
Losses cannot be deducted. If you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1).
Additional information (2023)
Where the bonds are acquired from a broker, the bond commission and security fee, is included in the price the bond was issued at and used to work out the discount on the price received at maturity.
Have a look at
SAIM3010 - Deeply discounted securities: introduction for more information.
Thank you
