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Where Taxpayers and Advisers Meet

Which exchange rate to apply?

Cap_Scarlet
Posts: 25
Joined: Sun Jun 17, 2018 2:59 pm

Which exchange rate to apply?

Postby Cap_Scarlet » Fri Apr 05, 2019 6:42 pm

For overseas income that is received monthly which exchange rate should I apply for UK income tax purposes. I assume the rate on the day the income was received?

darthblingbling
Posts: 260
Joined: Wed Aug 02, 2017 9:09 pm

Re: Which exchange rate to apply?

Postby darthblingbling » Sun Apr 07, 2019 10:46 am

HMRC publsh their own monthly averages I believe. But you can use a market rate if it's reasonable.

Cap_Scarlet
Posts: 25
Joined: Sun Jun 17, 2018 2:59 pm

Re: Which exchange rate to apply?

Postby Cap_Scarlet » Tue Apr 09, 2019 10:08 am

HMRC publsh their own monthly averages I believe. But you can use a market rate if it's reasonable.
Yes, thanks, i know that.

My question was whether to apply the average for the month or the actual rate on the day the cash was received?

darthblingbling
Posts: 260
Joined: Wed Aug 02, 2017 9:09 pm

Re: Which exchange rate to apply?

Postby darthblingbling » Tue Apr 09, 2019 12:09 pm

As I said, it's up to you, as long as it's reasonable

maths
Posts: 7561
Joined: Wed Aug 06, 2008 3:25 pm

Re: Which exchange rate to apply?

Postby maths » Tue Apr 09, 2019 1:45 pm

Darthblingbling is correct.

If you need pedanticism then according to HMRC, foreign income should be converted into £ at the exchange rate ruling on the day the income arises assuming the arising basis applies. The daily rate found on a respectable commercial website should be used.

Cap_Scarlet
Posts: 25
Joined: Sun Jun 17, 2018 2:59 pm

Re: Which exchange rate to apply?

Postby Cap_Scarlet » Fri Apr 12, 2019 11:58 am

Got it - thank you both.

So there is a bit of flexibility.


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