Foreign deposit interests - Which exchange rate can be used?

Hi admin, I have a couple of questions regarding the use of exchange rates for calculating foreign bank deposit interests: 1. When converting foreign interests to GBP, am I free to use any of the yearly average, spot rates, or monthly rates provided in the 'Exchange rates from HMRC in CSV and XML format'? For instance, if I received monthly USD interests on 31 October 2022 and on 30 November 2022, can I choose the January 2023 monthly rate to convert these interests to GBP? 2. I received 10 monthly USD interests in 2022/23. Am I allowed to use different rates for each deposit? Thank you for your assistance!

Hi,

When converting foreign interest to GBP, you can use any of the foreign exchange rates, for the appropriate year/month, issued by HMRC in CSV and XML format.

If you choose to use monthly exchange rates, you should use the specified exchange rate for each relevant month. You can see information here:                                         
HMRC exchange rates for 2022: monthly

Thank you.

 

Can I clarify your meaning? For instance, for a stock transaction (both purchased and disposed in November 2022), and interests received in November 2022. I can use either: (i) yearly rate, i.e. (a) average for the year to Mar 2023, or (b) average for the year to Dec 2022, or (c) spot rate on 31 Mar 2023, or (d) spot rate on 31 Dec 2022, or (ii) monthly rate, i.e. November 2022 rate. Many thanks!!!

Hi,
Yes you can use any of them.
Thank you.