Share this content

Disposal of shares in foreign currency

Disposal of shares in foreign currency

Didn't find your answer?

Hello,

I have a client who received shares as part of a share option scheme from their employer. The shares are listed on NASDAQ.

If these options were exercised in 2010 and sold in 2021 (21/22) when working out the chargeable gain should I:

1. Calculate the gain in the foreign currency and then convert at HMRC's rate in 2021; or

2. Convert the acquisition cost into GBP at 2010's rate and convert the proceeds at the 2021 rate and then calculate the gain?

I think option two is the correct way to proceed based on the following but would be happy to receive any input: www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg78310

 

Thank you.

 

Replies (10)

Please login or register to join the discussion.

avatar
By David Ex
17th May 2022 15:24

I agree 2 is correct.

Thanks (1)
Replying to David Ex:
paddle steamer
By DJKL
17th May 2022 15:47

I concur with my learned colleague.

Thanks (1)
Replying to DJKL:
avatar
By The Dullard
17th May 2022 16:01

We'll have to start calling you William!

Thanks (0)
Replying to The Dullard:
paddle steamer
By DJKL
17th May 2022 16:16

Not sure I understand why?

Thanks (0)
Replying to DJKL:
avatar
By Hugo Fair
17th May 2022 16:59

No idea either ... initially thought it might be (but that would be unkind):

"You are old, Father William," the young man said,
"And your hair has become very white;
And yet you incessantly stand on your head-
Do you think, at your age, it is right?"

"In my youth," Father William replied to his son,
"I feared it might injure the brain;
But, now that I'm perfectly sure I have none,
Why, I do it again and again."

Thanks (2)
Replying to Hugo Fair:
paddle steamer
By DJKL
17th May 2022 17:06

I have the white hair but no chance these days that I could stand on my head.

The only part that really fits is probably the third line of the second stanza.

Thanks (0)
Replying to DJKL:
avatar
By The Dullard
17th May 2022 19:10

William the Concurrer!

Thanks (3)
Replying to The Dullard:
avatar
By Hugo Fair
17th May 2022 19:43

Ouch ... I didn't see that one coming (seem to have got something in my eye).

Thanks (2)
Replying to The Dullard:
paddle steamer
By DJKL
18th May 2022 13:07

Bravo- I too did not see that coming.

Thanks (0)
Replying to David Ex:
avatar
By IWantToLearn
17th May 2022 16:03

Thank you both.

Thanks (0)
Share this content