How Low will the €uro go?
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How Low will the €uro go?
Just changed some ££££'s on Transferwise this morning and the rate is 141.5 €€€€'s !!!
What's the odds on it reaching 1.50 soon???
What's the odds on it reaching 1.50 soon???
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I agree, relying on a forward prediction would be crazy....however, i am just hedging my bets by changing a little as the rate increases!!!martyn94 wrote:Probably not high, but predicting forward currency rates is a mug's game. My concern is that it will go back down again just when I've got used to having the extra money.
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I don't follow your reasoning, you may have to pay more tax but you will have more euros to pay it with.Smiley G wrote:Don't forget that a strong £ is a double-edged sword. If you receive your income/pensions in £Sterling, a high FX figure will enhance your income in €Euros, possibly resulting in a higher French Tax Band.
Using your logic a cut in pension would be good because you would pay less tax on it.
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Allan, if the rate is high in 2015 and then drops later in the year (change in U.K. Government) your tax is levied in 2016 (for 2015 income) and will have to be paid out of that reduced income.
I appreciate you could "put some of the enhanced income away" but in practical terms people don't tend to do this.
I think the article I studied was from some specialist expat financial advisors.
I appreciate you could "put some of the enhanced income away" but in practical terms people don't tend to do this.
I think the article I studied was from some specialist expat financial advisors.
Tinker Tailor Soldier Spy.
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If I have understood your point correctly then conversely, if you are paying 2014's tax in euro out of this years income in GBP then the tax will now cost you less. But next year it could be the other way aroundSmiley G wrote:Allan, if the rate is high in 2015 and then drops later in the year (change in U.K. Government) your tax is levied in 2016 (for 2015 income) and will have to be paid out of that reduced income.
I appreciate you could "put some of the enhanced income away" but in practical terms people don't tend to do this.
I think the article I studied was from some specialist expat financial advisors.
I can't see disadvantages to a good exchange rate for people who's income is in GBP. unless the are selling up and moving back to the UK
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I perhaps should have pointed out in my original post that it would be prudent in times of plenty to put some additional money aside for the following year, especially if you think that your tax band might change because of enhanced income (by way of high FX rates).
Allan, I agree that the principal disadvantage of a strong £ against the € is the scenario of someone selling up to return to the U.K. Currently 1€ buys £0.7180, so 100,000€ would only "buy" about £71,800 !
Allan, I agree that the principal disadvantage of a strong £ against the € is the scenario of someone selling up to return to the U.K. Currently 1€ buys £0.7180, so 100,000€ would only "buy" about £71,800 !
Tinker Tailor Soldier Spy.