Scenario:
I buy a share for 1 dollar at a time when the exchange rate is 1euro = 1dollar.
Some time later I sell that share for 2 dollars but now the exchange rate is 2dollars = 1euro
In this scenario I made a 1 dollar gain but converting back to euro I made no gain.
Am I correct in understanding that in a scenario like this that there is no CGT liability?
Thanks for that jpd.
For tax purposes if you get the exchange rate for the day(e.g. from central bank website) is there a standard "exchange rate - X%" allowed in the calculations as you never get the exchange rates quoted online?
Just use the Central Bank exchange rate - no, I don't think there's an allowance for the exchange rate fee. In any case, if you are not actually converting the foreign currency proceeds, it would not be appropriate to charge a fee.