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Retirement Extension - income queery


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I'm currently on a retirement extension using the 800,000b in the bank method..

Due to some recent expenditure i will now need to renew my extension using the "combined method".

i'm a British citizen and was going to send some bank statements showing money coming in each month from an off shore savings.

Anyway,

was chatting with a (British) neighbour who said that the British Embassy can only issue verification letters if the money comes into the country in English pounds from the UK (mine comes in US Dollars, not from the UK)...

Can anyone confirm this to be true and if so, how do i go about verifying the income to appease the Immigration Department.

Any help greatly appreciated.

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