calculating CGT on shares held in $

Sort of a complicated question...

In Nov 2006 I sent 10,000 euro to the US ($12500; 1 euro=$1.25). In May 2007 I sent another 10,000 euro ($13500; 1 euro = $1.35). I have been buying and selling shares since Jan 2007 up until this Sept. From the revenues website, acquisitions and disposals must be converted to euro at the tranaction dates before calculating the amount of tax payable.
I have two questions:


1. Acquisition: Up until May, I was buying shares using the first 10K euro. From May until sept, I pooled the second 10K with this, and again I bought/sold shares. Is the exchange for the first 4 months (i.e. Jan - April) 1 euro = $1.25 and then from May to Sept 1 euro = $1.30 i.e. the mean of 1.25 and 1.35?

2. Disposal: Can I use the mean euro-dollar exchange rate from Jan - Sept 2007? - it would make life a lot easier 'cos I've had ~ 50 transactions in the last 9 months

(all figures are fictional for simplicity purposes!)

Thanks!

I don't think that the exchange rate that pertained when you converted money or sent it to the US matters. I thought that what mattered was the rates that pertained at the time that you acquired and subsequently disposed of shares?

Thanks for that Clubman - it makes more sense

Anyone got an opinion of my second query?

I seem to recall reading somewhere what exchange rates are acceptable to Revenue. Have you checked their website for such info or just asked them?

You need to use the exchange rate on each transaction date.