rate for tax

[Belle]

We are about to fill in our tax forms, as we only bring our pensions over once a year, usually end of Dec. I right down the rate as it is at the end of Dec. Hubby is now not trusting me that I got it right, can anyone help with this please. Thanks.

[Iceni]

Don't understand your confusion - use the rate that was applied when the bank coverted your GBP to EUR.

John

[Belle]

The bank doesn't convert our pensions, they get paid in sterling every month to our uk bank account, we then transfer them into our uk savings account, then at the end of the year we use moneycore to bring it all over.

[Sunday Driver]

The taxable event occurs on the day that your pension provider pays the money into your UK bank account - not when you eventually get around to transferring the money to France.

You can either use the actual exchange rate applicable on the day the money arrives in your UK account or the composite rate for the year as approved by the tax office.  You will find further details on this [url=http://www.completefrance.com/cs/forums/1663218/ShowPost.aspx]recent thread[/url]

 

 

[JohnRoss]

There is some confusion about this. It has been suggested that the rate to use is the one that applied when you received the income regardless of whether you transferred it or not. This seems a little unfair if you transferred it in December this year at about 1.05 Euro/Pound! Another suggestion has been that you should use the average rate for the year as a more practical approach saving masses of calculations for each month at about 1.25 Euro/Pound. Many people seem to be using the latter................................JR 

[Sunday Driver]

Not sure where the confusion arises.

You have a choice of which rate to use, so you chose the best option for you.

Transferring monies across to France at a time when the exchange rate was unfavourable may be unfair, but it was the individual's choice.  If the situation can be mitigated by taking advantage of the more favourable concessionary rate, then fine...[;-)]

[babcock]

[quote user="Sunday Driver"]

The taxable event occurs on the day that your pension provider pays the money into your UK bank account - not when you eventually get around to transferring the money to France.

You can either use the actual exchange rate applicable on the day the money arrives in your UK account or the composite rate for the year as approved by the tax office.  You will find further details on this [url=http://www.completefrance.com/cs/forums/1663218/ShowPost.aspx]recent thread[/url]

 

 

[/quote]

Using the rate on the date it was paid would be fun. My husband has three pensions paid monthly on different dates. I have three, one paid monthly, one paid four weekly and one paid six monthly. We've never had a problem using the year end rate but will probably query the local tax office.