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Posted Thu, 01 Jun 2023 13:07:26 GMT by Jim
Hello, These forums look very helpful. I have a small amount of overseas shares that are generating cash dividends. The amounts are small, and within dividend allowances, however I wish to ensure I get everything correct in terms of how I exchange the money as when I sell the shares there may be CGT gains/losses. I understand I can use monthly, annual, or spot rates. I would like to get further clarification on this. 1) For any given date there appears to be 5 total rates I can use. Is this correct? - Monthly exchange rate for the month the transaction falls in. - Annual rate to 31st December following the transaction. - Annual rate to 31st March following the transaction. - Spot rate at 31st December of that year. - Spot rate at 31st March. As a hypothetical example, assuming a transaction date of 28th February 2022, could I use exchange rate from: Monthly exchange rate for February 2022 Average for the year to 31st December 2022 Average for the year to 31st March 2022 Spot rate on 31st December 2022 Spot rate on 31st March 2022 2) If I have several transaction, can I pick and choose which exchange rate I use for each transaction? E.g., for some transactions I use monthly and for others I use annual depending on which is best for me? Or do I have to be consistent with the exchange rate type that I use through the whole series of transactions for the year (e.g., I would have to use monthly for all transactions if I decided to use monthly) Many thanks!
Posted Fri, 02 Jun 2023 07:42:39 GMT by HMRC Admin 25
Hi Jim,

You can pick any of the options for the year the transactions take place. 

Thank you.
Posted Fri, 09 Jun 2023 10:01:43 GMT by msirl
Hi, I have similar question. For this hypothetical example, i.e. a transaction date of 28th February 2022, As it falls in the tax year 2021/2022, can I choose the use the (a) Average for the year to 31st December 2021, or (b) spot rate on 31st December 2021? Many thanks!
Posted Tue, 13 Jun 2023 13:51:34 GMT by HMRC Admin 32

If the transaction date is 28 February 2022, you can use either the average rate for the 2021 to 2022 tax year, the appropriate spot rate, or the monthly rate for February 2022.

Thank you.

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