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