Can anyone tell me what should happen when a delay between foreign income arising and being converted into sterling results in an extra gain from the exchange rate?
A USD cheque is issued in July, but not cashed into £ until October. In the intervening months a change in the $/£ rate means that it cashes for £100 more than the £ value at date of issue. I.e. the $ cheque was worth £1000 in July, but £1100 by October.
On the arising basis HMRC guidance is to use the exchange rate from the date the income arose (July - £1000). How then should I report the additional £100 gain (or equivalent loss)?
Thanks for any answers.