jasperboy

Hola.

1. Last year I received a yearly interest in a UK account in June.
Now doing the renta, so do I declare the interest amount received gross?

Obviously this payment includes interest coming from the previous year too but I don´t mind

about paying tax on that if it makes the paperwork easier.
Or do I need a special statement showing the interest earned between 1st jan and 31dec?

2. What exchange rate do I use to get the amount in Euros?

3. I also had a small profit from selling some shares. I understand here there´s no

allowance on CGT, so again the same question, what exchange rate do I use?

4. Annnnnnndddd finally. I also received a cash gift from my parents, who live in the UK,

into my UK account. I now understand this is also taxable.
Is there a document I have to fill in to register this or do my parents have to give me a

letter stating it´s a gift or something?
It was by cheque from their bank account and put into mine, so would they need something

from their bank and I hand it in here????

I´m seeing a gestor about it all, but always nice to have some info from anyone who has

actually lived the experience.

thanks alot
J.

cricketman

Firstly, do not declare the cash gift from your parents. Seriously. Hacienda will not expect you to unless it is 100,000s of euros

For UK interest, yes you need to declare, either gross or net depending on whether you have had tax taken off in the UK

Yes shares also you need to declare

You should declare all interest/dividend payments received in the calendar year. So if you receive one annual interest payment in the calendar year then that is what you declare

For exchange rate then I usedthe one stated on 31st Dec 2014

snikpoh

This is exactly what I have been doing for the past 9 years with no problems.

Fred James

It's up to you which exchange rate you use for income. The annual average is OK, but you can use the rate on the day that the income was issued. Worth doing if it was at a more favourable rate.

You don't have to explain what rate you use, you just declare what it was in Euros.

For my pension payments which are paid direct into my Spanish bank, I use the actual Euro amounts. If it was more advantageous to use the annual average I would use that.

The only time you HAVE to use the official rate is for the asset declaration and that is the rate for 31st December.

For the interest, just work out which bit was in the calendar year - you don't have to submit any paperwork to justify your calculation.

Gifts of any kind should be declared but as Cricketman said, small cash amounts are usually not declared even though they should be. Just avoid bringing in a large amount of the gift otherwise you might be asked to say where is came from.

CapnBilly

Even if you did decide to declare a gift, the Renta is not the correct model. It should be declared on a Modelo 650.

jasperboy

Thanks Fred,

Is there an official link from which I can get the various exchange rates mentioned? I want to use one I know that hacienda will accept.

I have to declare from previous years too so am looking for a link which will give me previous years official exchange rate too. Anyone know where I can see that official rate online please.

Thanks for the help ladies and gents

jasperboy

Thanks for the reply.

Surely I have to declare the gross amount no?
If the British bank statement shows 1000 paid in interest,then this is the net amount and I need to add back on the 20% to get to gross amount?
Or do I have that wrong?

cheers

Fred James

Apart from the year end rate for wealth tax/asset declaration, there does not seem the be an official rate. As you only submit your details in Euros Hacienda will not care how you arrived at your figures.

I use one of the many FX companies who all have historical data for the rate on any day and also the average over any period. Personally, I use this one as it is easy to use.

Historical Exchange Rates | OANDA

jasperboy

Great tool, thanks Fred.

snikpoh

Banks and building societies will always issue you a Tax Certificate. On this they show the gross interest, tax paid and net interest (mine do anyway). Why not simply use this and then the calculations are all done for you.

jasperboy

Ok thanks. I´m pretty sure the gestor will know that anyway.
The only thing bothering me is that he said most people write a note to say they are giving a gift to a child, with the amount stated etc and then the notario signs it and it´s seen as official (nice work if you can get it).

But obviously my mum and dad aren´t going to come over here to see a notario. So any idea what documentation I would need from them (if any)?

jasperboy

I can get that fromthe bank yes, but I´m not sure which I declare, the net or the gross figure?

cricketman

It will tell you which figure is needed on the Spanish IRPF form

If I remember correctly, you have to declare the gross figure and then say how much of that you have already paid in taxes in the UK (or anywhere else)

CapnBilly

The Banco de Espana publish the official rate every day. It's the same as the one published by the ECB and is an average of the Central Banks exchange rates at 2.15 CET.

NadiaN

I get the rate from the European Central Bank's site:
ECB: Euro foreign exchange reference rates

They have today's rate, the rates from the last 90 days (in xml format) and the rates since 1999 (in xml format).