CG78314 - Currency: assets acquired or sold for currency

You should not accept a contention that the gain or loss on an asset acquired and disposed of for foreign currency should itself be computed in foreign currency and then converted into sterling at the rate ruling at the time of the disposal of the asset. The decision in Bentley v Pike, 53TC590, that the capital gains computation had to be worked in sterling was confirmed in the case of Capcount Trading v Evans, 65TC545.

Where it is claimed that the prevailing exchange rate is inappropriate because the currency is blocked, the case should be reported to the Shares and Assets Valuation.