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Posted Mon, 20 Nov 2023 13:51:56 GMT by
Hi, I have received compensation from court in India, for some money I had loaned in 2017. The loan was extended in Indian Rupees (INR) & all payments in India re in the same currency. I wanted to understand on how to calculate the compensation amt in GBP- effect of currency exchange rates over 5 years. In order to calculate the amount in £, should I convert the original loan amount, payments received in Indian Rupees (INR) to £, using the conversion rate at the time. The excess would be income in GBP, similar to how CG is calculated. Is this correct? or simply take the excess in INR & convert to £ using the year's average rate? The reason is that there is a 20%movement in the exchange rates in the 5 years. Just to make it clear, say the loan amt is 10k INR or 120£ at the date, returns from court total to 15K INR or 150£ at the dates received, so is my taxable income in UK be 5K INR =50£ (using FY average conversion rate) or would it be 30£ based on the above conversions. Thank You
Posted Wed, 22 Nov 2023 16:10:58 GMT by HMRC Admin 25 Response
Hi AB CD,
Please refer to guidance at

CG13060 - Compensation: compensation for deprivation of foreign assets: compensation received on or after 6 April 2010 (1 April 2010 for companies): TCGA92/S268B

You can use the average exchange rate if applicable
Thank you. 

[Post edited - HMRC Admin]
Posted Thu, 23 Nov 2023 14:17:05 GMT by
sorry, dont understand? what do you want me to copy paste?

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