Q&A:

FOREX FACTOR

Q. I maintain a stock market trading account in the US with one of the online brokerages for trading US- based securities. I periodically lodge dollars to that account from my Irish bank account, getting the dollar exchange rate on the day.

When I buy and subsequently sell stocks, which exchange rates should apply when calculating my capital gains tax liabilities - the rate on the days I move funds to and from the US account, or on the days I bought and sold the stock? If the latter:

a) can I also be liable to profits/ losses purely on the currency movement?

b) is there some internet site that might show me historical dollar/euro exchanges in order to calculate this?

A.For the purposes of capital gains tax liability, the determining factor is the date of transaction. That is when the capital gain (or loss, in these volatile times) is locked in. As a result, you would need to calculate on the basis of the dollar/euro rate on that day.

From the point of view of the Revenue, how you juggle foreign exchange issues among your bank accounts is a matter for yourself.

Beyond that, you are liable to the vagaries of the forex markets; you will not be able to offset such costs against any capital gain that arises on the share transaction.

As far as calculating the correct euro/dollar rate, the Central Bank should be able to give you the prevailing rate on the dates in question. Equally your own banks - here or in the US - should also be able to provide this information. I am not aware of a website that lists historical foreign exchange information - although it is quite likely that some reader will enlighten.

Q. Like so many others joining the property ladder, I secured a tracker mortgage with one of the main financial institutions with a discounted rate for the first 12 months. However, when the first 12 months ended the institution raised my mortgage twice in one month so that the mortgage jumped by €200 a month.

The bank notified us that our discounted rate was ending and then put the mortgage up by €80 a month (rate A). However, it sent another letter saying that the mortgage was rising by another €130 a month (rate B).

I have made several attempts to contact the bank through e-mail, phone and registered mail, all of which have been ignored. How many other people have been abused by the bank in a similar manner? People should be made aware that our main banking institutions are acting like subprime lenders and charging whatever interest rate they like.

Mr RC, Kerry

A.There clearly has been a breakdown in communications here. I gather from your letter that, in your frustration, you have now contacted the financial services ombudsman which, in my view, is entirely appropriate.

I have no idea which - or indeed whether either - of the two rates of which you have been advised is the correct rate. The important thing, however, is that the bank has no right simply to ignore your communications.

You have a reasonable query. At the very least the imposition of two separate rates indicates that there was some confusion in the bank itself about the rate that should be applied to your account. I don't have your original figures but you should be able to tell fairly clearly what the difference should have made in terms of repayments. The European Central Bank certainly has not raised its rates in the past few months.

How many people are being charged incorrect rates? There's no way of knowing. We advise people to keep a close eye on their statements - and their financial affairs in general.