What exchange rate do I use?

Since the age of 65 this last year I have been receiving a monthly pension from the UK. Would this normally have tax already taken off in the UK?
I will be of course be declaring the sum received during the year to December 2007 but am not sure at what rate of exchange use.
I have also received as a one-off payment the net sum of about £9,000 from an ailing private pension plan - this sum was sent to me after deduction of UK tax.
Would I have to declare this on my French Tax form? Would I have to pay tax in France on the net sum received even though it has been taxed in the UK? Would this come under some double tax relief agreement?
DC

These issues have already been dealt with on previous occasions, but it is never a bad thing to perhaps revisit past questions.

As to UK tax being taken off the UK pension, as on the basis that you are a French tax resident, this depends on who the payer of the pension is, as some pensions that qualify as 'government' pensions will always be taxed in the UK, and thus will always be liable to deductions of UK tax.

For those pensions that do not qualify as 'government' pensions, they should be paid in the UK gross, without deduction of UK income tax.

However, this can only be achieved once certain tax forms have been submitted to confirm your tax residency in France. Unfortunately, without knowing who is paying your pension it is not possible to give further details, and with regards to the tax forms needed you would be best advised to see a professional adviser as there may be more to your tax situation than at first sight.

With regards to the payments from the ailing pension, sadly, again, one would need to know more, although if it has been made after the deduction of income tax, it qualifies as income and should therefore be declared as income in France if it was received since the date of the commencement of your fiscal residency.

Otherwise, if the amount was received while not a French tax resident, then it has no relevance for the French tax return.

As to paying tax in France on income that has already suffered income tax in the UK, the answer in this case is no.

What will happen, however, if you have received these sums as a French tax resident, and after the tax forms have been completed to confirm you tax residence in France, is that you will receive a UK income tax refund and have to pay French tax on the same income.

As to whether you will have to pay the French tax before receiving the UK tax refund is uncertain given the current time of the year, but you should be able to receive the UK tax refund first.

If you missed the April edition, the helpsheet is available from the site by clicking here, priced €5.