CG78327 describes an approach to computing gains and losses in connection with a foreign currency bank account where there are many transactions. This paragraph provides a worked example to illustrate that approach.

Consider an account denominated in US dollars to which TCGA92/S252(2) (sums representing currency acquired for personal expenditure) does not apply. The account is subject to many credit and debit entries in the course of a year. The monthly totals of credits and debits are as shown below. Also shown is the monthly average exchange rate for sterling to dollars.

Total credits/$ Total debits/$ Avge exchange rate
April 7520 5000 0.504400
May 8100 6500 0.508768
June 7570 7575 0.508343
July 9230 6800 0.502694
August 6730 9250 0.528316
September 8210 5420 0.554933
October 7970 6400 0.589352
November 6990 7500 0.651597
December 15730 17650 0.672184
January 5580 4530 0.690832
February 7260 7240 0.692636
March 8340 7950 0.704384
TOTAL 99230 91815

The dollar (credit) balance at the start of April is $75,425 and the total allowable cost of the asset is £49,383.

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