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Tax Declaration - £ to € exchange rate?


Crevette

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I know I have asked this question before but it is really worrying me about what exchange rate will be used for the tax declaration.

This year the exchange rate has fluctuated beween 1.41 to 1.52 € to the pound.

If you are paid 30,000 for example, the difference is between a declaration of 42300 to 45690.

This may not seem too much, but with the tax bandings most of the difference falls in the 37% tax band.

Thus it makes a difference between €7368 and €6455...

I read that if you see the tax inspector they will decide a figure, but surely there must be some official published figures somewhere? (and I don't want to see the tax inspectors every year!)

I have search the "impots" web site but no luck.

Any help would be much appreciated.

Regards,

-Rob-

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You should use a rate that is reasonable for the date on which you receive the sterling amount. The euro/sterling exchange rate is published in most papers and on various sites on the internet. Make sure that you use a commercial rate, rather than the tourist one.

The main point is that you must be able to justify the rate if it is queried by the impôts - it doesn't have to be exact.

Regards

David

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Yes, it's in small print somewhere on accompanying notes, in principle it should be the rate at the Bourse in Paris at midday on the date that the payment was received. Unless it's changed, I think that was two years ago.
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Our accountant has told us that he is obliged to use figures for exchange rates published offically on a monthly basis - which is why he is only really interested in which month we have recieved foreign currency payments rather than the exact date. I've got to have a chat with him next week, so I'll try to remember to ask him for more details.
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All the tax returns that we have completed so far have had all income declared in Euros. I have always used the rate that we got on things like pension where my UK pension comes across monthly in Euros having been converted by Nat West. The Nat West rate is often lower than others but that is what we got so that is what we declare. I think that all UK Govt pensions can be paid across in Euros but you have to accept the rate of the bank they (Capita I think) use and that is Nat West in the case of ex-teachers we are told. 

On income in Sterling, like Building Society interest, that stays in the UK I have used an average of the same conversion figures that I got with Nat West and so far no problems with the French taxman but then he has not asked for the Sterling figures so far. 

With most UK building societies closing accounts for non-residents one might have to go off-shore for a savings account and therefore not need to declare interest as long as it stays off-shore but that is all due to change shortly I gather!

It might be misleading and not in your favour to use figures provided by someone like XE.com.................John not Jackie

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"With most UK building societies closing accounts for non-residents one might have to go off-shore for a savings account and therefore not need to declare interest as long as it stays off-shore but that is all due to change shortly I gather!"

Taxation in France is based on world wide income so "not need" is not applicable, off shore accounts are taxable in France now, also that which is tax free in the UK (Peps&Isas etc) is generally taxable in France.
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Taxation in France is based on world wide income so "not need" is not applicable. Sorry I meant to say "Not need but should"

What about an off-shore bond where it just sits there and money is not taken out and it goes up and, sadly of late, down in value?............J

 

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