I have US dollar earnings (usual Internet business) which go in my US dollar savings account, which is held in a UK bank.
On my tax return, do I use the exchange rate on the day each time a deposit was made to my account? Or are there published exchange rates that are used?
And now that the pound has crashed so much, my dollars are worth much more. Do I only have to declare the increase for capital gains once I convert to sterling?
I've left this rather late.
Yes, that is the theory.
I have exactly the same problem (!), (Except I'm in Euro).
I don't know the answer and was thinking of posting here to see if anyone did.
For the second point, I don't have this problem as I haven't yet made that gain. The original money was income from 2007-8 so should be declared (and taxed) in 2007-8, but the currency conversion gain from Euro to Pound will be made in 2008-9 and thus taxed in that year (if at all).
I assume you are taking about the same situation?
tim
True.
You can either use the average rates published at
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