UK Capital Gains Tax on International Futures

[jswede]

Hello,

I was wondering if anyone had any experience with UK CGT on international futures. Is the notional value of the futures trade and FX rate used for capital gains calculations? For example:

Opening position
BUY x 1 Eurodollar future
Price 99 * $2,500 per contract = $247,500.0
GBPUSD on day of purchase: 1.3‬000
Allowable Cost = $247,500 / 1.3‬000 = £190,384.62

Closing position
SELL x 1 Eurodollar future
Price 99.5 * $2,500 per contract = $248,750‬.0
GBPUSD on day of sale: 1.2000
Disposal Proceeds = $247,500 / 1.2‬000 = £207,291.67

Disposal Proceeds - Allowable Cost = Net Chargeable Gain
£207,291.67 - £190,384.62 = £16,907.05

In this example, there would only be a gain of USD 1,250 on the trade but the chargeable gain ‬would be much higher at GBP 16k due to the FX rate change.

Is this calculation correct?

Thanks in advance,

JS

 

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