Bugsy Posted January 12, 2009 Share Posted January 12, 2009 I have a fixed-term bond (one year) in an off-shore account, that ends in April.As the french tax returns run Jan to Dec how should I show the income received from an April to April investment ?thanks for any advice.Gary. Link to comment Share on other sites More sharing options...
woolybanana Posted January 12, 2009 Share Posted January 12, 2009 The offshore bank should send you a statement of interest earned based on the European tax year, as well as one based on the UK tax year. You could just fone and check.Just an aside, if you receive the interest monthly, you will need to prove this as the French tax system only recognizes annual payments. Of course this may not be important in your case. Link to comment Share on other sites More sharing options...
Bugsy Posted January 12, 2009 Author Share Posted January 12, 2009 Thanks Wooly, the interest is paid annually, at the end of the term.I'll bet they don't offer the same rate for another year [:(]. Link to comment Share on other sites More sharing options...
woolybanana Posted January 12, 2009 Share Posted January 12, 2009 No, it is less than half. Link to comment Share on other sites More sharing options...
Benjamin Posted January 12, 2009 Share Posted January 12, 2009 If you only phsically receive the interest in April then I would include it in the year it is received i e if you receive it in April 2009 then include it in your return for 2009 which you will submit in May 2010.Others may differ but if you take the scenario where you urgently need the capital sum back all the banks and building societies I've looked at will agree to this, but at a rate of interest substantially below that which they will be paying on the bond. If you've already tried to calculate the interest which you might have received then you could find yourself in the m e r d e. Link to comment Share on other sites More sharing options...
woolybanana Posted January 12, 2009 Share Posted January 12, 2009 Just been onto my CI bank who are not taking deposits at the moment as they have been too successful and have to rein in a bit. BUT, if you are existing customer with a bond currently maturing, they will offer you a rate, currently 4.5%. However, that may not last long. Link to comment Share on other sites More sharing options...
woolybanana Posted January 12, 2009 Share Posted January 12, 2009 [quote user="Benjamin"]If you only phsically receive the interest in April then I would include it in the year it is received i e if you receive it in April 2009 then include it in your return for 2009 which you will submit in May 2010.Others may differ but if you take the scenario where you urgently need the capital sum back all the banks and building societies I've looked at will agree to this, but at a rate of interest substantially below that which they will be paying on the bond. If you've already tried to calculate the interest which you might have received then you could find yourself in the m e r d e.[/quote]IMNHO the interest should be split across two financial years in this case which is what I do and is quite legal. It might mean you earn less for tax purposes. Link to comment Share on other sites More sharing options...
mint Posted January 12, 2009 Share Posted January 12, 2009 As suggested, Bugsey, declare the interest in the year you receive it.That's what I propose to do this year and I think it was originally SD who, in his authoritative way, told me that that would be OK. Link to comment Share on other sites More sharing options...
Benjamin Posted January 12, 2009 Share Posted January 12, 2009 woolybananaI think consistency is important here but declaring income before you've physically received it can have it's pitfalls as I described earlier. Link to comment Share on other sites More sharing options...
Bugsy Posted January 12, 2009 Author Share Posted January 12, 2009 Thank you all.................... Link to comment Share on other sites More sharing options...
woolybanana Posted January 12, 2009 Share Posted January 12, 2009 [quote user="Benjamin"]woolybananaI think consistency is important here but declaring income before you've physically received it can have it's pitfalls as I described earlier.[/quote]My income is paid monthly so they get that declared for the month I got it. Link to comment Share on other sites More sharing options...
parsnips Posted January 13, 2009 Share Posted January 13, 2009 [quote user="Benjamin"]woolybananaI think consistency is important here but declaring income before you've physically received it can have it's pitfalls as I described earlier.[/quote]Hi, The rules say you have to declare interest(and other income)for the year of the date on which you either recieve it or it is credited to your account. Link to comment Share on other sites More sharing options...
allanb Posted January 16, 2009 Share Posted January 16, 2009 [quote user="parsnips"]The rules say you have to declare interest(and other income)for the year of the date on which you either receive it or it is credited to your account. [/quote]Can you tell us where you found this? I did once look for a definite rule but couldn't find one. Until now I have assumed that you generally have the option of declaring income inthe year when it's earned rather than when it's received, as long asyou do it consistently. However, this is strictly a non-expert opinion. I have a sterling deposit account on which theinterest is credited once a year in May, and for my first French declaration I asked for astatement of interest accrued up to 31 December. The bank proposed tocharge a fee for this (£15, I think) so I told them to forget it. I just do my own little calculation each year. As a practical matter, as long as the calculation is reasonable and the total declared for both years agrees with theamount actually credited, I don't expect to get into any trouble. Link to comment Share on other sites More sharing options...
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