Can I offset losses due to Exchange rate fluctuations

[BrendanDub]

Hi,
I exercised US company stock options in 2003 when US$ was a lot stronger than it is now. I left the money in the US until now when I need to pay tax on it. The original value of the gain in euros is obviously a lot lower now due to the weakening of the dollar. First of all, must I use the exchange rate at the date of exercise to calculate my tax? If so can I offset the capital loss in the value of the asset (ie the US $ amount) in the time between the exercise and the conversion to euros, and can this loss be offset against income tax?

 

[Capall]

In calulating your chargeable gain/loss you must translate the proceeds using the rate of exchange at the date of sale and the expenditure using the rate applicable at the date(s) the expenditure was incurred

 

[rainyday]

Hi Capaill - I thought you had a number of options regarding what FX rates you declare for these transactions, with the restriction that Revenue expect you to be consistent from year to year in the rate chosen. I thought you could choose from;

1) The actual rates incurred on the day of the transaction
2) The Revenue 'standard' rates for that year

 

[Capall]

That sounds reasonable to me. I have seen revenue publish standard rates for the year.