CG78336 - Foreign currency: example
| Day 1 | US$2.40 to 拢1X borrows US$100,000 | (=拢41,667) |
| 听 | 听 | 听 |
| Day 8 | US$2.30 to 拢1X buys shares for US$100,000 | (=拢43,479) |
| Day 360 | US$2.00 to 拢1X sells shares for US$100,000 | (=拢50,000) |
| Day 365 | US$1.90 to 拢1 X repays loan US$100,000 | (=拢52,631) |
The chargeable gain on the disposal of shares is computed as follows -
| 听 | 拢听 |
| 听 | 听 |
| Day 360 Disposal proceeds (in sterling terms) | 50,000 |
| Day 8 Acquisition cost (in sterling terms) | 43,479 |
| Chargeable gain subject to indexation听 | 6,521听 |
The chargeable gains in respect of foreign currency are computed as follows -
| 听 | 听 | 听 | 听 | 拢 |
| 听 | 听 | 听 | 听 | 听 |
| (i) | Day 8 | Disposal proceeds (in sterling terms) | 听 | 43,479 |
| 听 | Day 1 | Acquisition cost (in sterling terms) | 听 | 41,667 |
| 听 | 听 | 听 | Chargeable gain | 1,812听 |
| (ii) | Day 365 | Disposal proceeds (in sterling terms) | 听 | 52,631 |
| 听 | Day 360 | Acquisition cost (in sterling terms) | 听 | 50,000 |
| 听 | 听 | 听 | Chargeable gain | 2,631 |
No relief is due for the `loss鈥� in sterling terms on repaying the loan (repaid 拢52,631 - borrowed 拢41,667 = `loss鈥� 拢10,964).
NOTE. If a taxpayer is within the charge to Capital Gains Tax, neither indexation allowance nor taper relief apply to disposals of assets on or after 6 April 2008. Previously indexation allowance had been frozen at April 1998. For indexation allowance see CG17207+ and for taper relief see CG17895+.