questions: declaration of uk interest and CGT on share sale

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.
 

We've just done ours. The gestor said to use 1.285 euro to the pound which seems a bit harsh considering the exchange rate wasn't that high for most of the year but they use the exchange rate in December.

We printed out two years interest statements and used one quarter of one year and three quarters of the next. 

Interest is declared gross and the amount of tax paid on it goes in the next column. The tax you paid is taken into account in Spain.

Sorry, I don't know about shares or cash gifts.

The normal procedure for declaring interest, is to declare it in the year of receipt. This is because until it is actually received it is an accrual, not actual income. Axpccrual accounting is only normally used by companies.

i don't agree with the use of the exchange rate as at the 31st December. At the end if the day it's up to you to decide the rate you use as its self assessment. However, if  called upon to do so, then you would need to justify the rate to the Hacienda. Gestors  tend to use the same rate for all clients so as not to cause confusion. I don't use them anymore, but when I did they used the average rate for the year, which I also use for returns I submit myself. 

The average for the year was 1.24 which is why I thought 1.285 was a bit harsh.  4 centimos might not seem a lot but it adds up to 1200 euro over the year.

No idea what you mean by accrual but our interest is paid monthly (after tax) and the interest certificate goes from April hence using the last quarter from one certificate and 3 quarters from the next.  Same as the P60s.

Thanks Everyone.

mariedav:

"Interest is declared gross and the amount of tax paid on it goes in the next column. The tax you paid is taken into account in Spain."

The amount shown on my British bank statement is the net paid to me. I was going to divide it by 0.8 to get the gross amount. e.g. net was 1000 so gross must have been 1250.

I´m going to declare the 1250 figure. Is that correct?

J.

Thanks Kathyslad

The amount shown on my British bank statement is the net paid to me. I was going to divide it by 0.8 to get the gross amount. e.g. net was 1000 so gross must have been 1250.

I´m going to declare the 1250 figure. Is that correct?

Your bank should send you a statement of annual interest every year, usually about the beginning of May. This will show the amount of interest you receive (gross), the amount of tax paid and the amount your received net.

Mine is online with Natwest in UK and I get a paper one from my Spanish bank.