Social Charges On UK Rental Income

Simonflys
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Re: Social Charges On UK Rental Income

Post by Simonflys »

@limousinlady - just ignore me - I went right off track - corrected now ! (I think!) :roll:

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Re: Social Charges On UK Rental Income

Post by limousinlady »

Simonflys wrote:
Fri Aug 02, 2019 4:26 pm
@limousinlady - just ignore me - I went right off track - corrected now ! (I think!) :roll:


phew! I have nightmares every year completing the tax return. But thank you for posting the English links, as I wasn't aware of those and they will make life so much easier.

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Re: Social Charges On UK Rental Income

Post by Debra »

I thought the new charge was only for investment income that is normally taxable in France. So whereas an S1 holder would have paid tax on that in the past they shouldn't have paid social charges according to the courts but now they pay the 7.5%.

Whenever anyone gets charged social charges on UK rental income in error it usually turns out they haven't put the income in all 3 necessary boxes on the 2042.

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Re: Social Charges On UK Rental Income

Post by Debra »

I've read the links provided and they're about French property income - not UK property income.

So if you have an S1 then this year you no longer pay 17.2% social charges on your French property income or other investment income that is taxable in France (share dividends, savings interest, capital gains on sale of shares) but only pay the 7.5% charge. I have an S1 and that's what's happened to me.

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Re: Social Charges On UK Rental Income

Post by AmandaJ »

So, if I understand it correctly:

French resident
UK property income
S1 holder

No CRDS or CSG but Prelev Solidarité is charged at 7.5% ?


We've not been charged CRDS or CSG but have been charged Prelevement Solidarité and from what I've read I think this is correct - does that sound right ?

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Re: Social Charges On UK Rental Income

Post by Debra »

AmandaJ wrote:
Sun Sep 01, 2019 12:25 pm
So, if I understand it correctly:

French resident
UK property income
S1 holder

No CRDS or CSG but Prelev Solidarité is charged at 7.5% ?


We've not been charged CRDS or CSG but have been charged Prelevement Solidarité and from what I've read I think this is correct - does that sound right ?
Absolutely incorrect. Did you enter your UK property income in all three boxes on your 2042 form? 4BE/4BK/8TK OR 4BA/4BL/8TK? If you did that then your tax and social charges will be shown but then credited out again so in the end you pay nothing - they're only shown because they are added to your other French taxable income to make sure you're charged on that at the right level.

On my avis d'impots I have share dividend income, capital gains from selling shares, bank interest and UK rental income all listed under the prelevement solidarity income and the charge is shown but then there is an amount of 'credit d'impot revenus etrangers' which reverses the amount that related to my UK rental income (7.5% of that income). The amounts are also shown in the other columns but the base imposable for CSG and CRDS is 0 (because I have the S1 and I ticked the box to say that when I did the declaration).

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Re: Social Charges On UK Rental Income

Post by Le Démerdeur »

I'm pleased that you have benefitted Debra, nobody deserves it more than you, knowing your situation I am confused as to how you came to have an S1 though, where can I get one? :D
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Re: Social Charges On UK Rental Income

Post by lindal1000 »

We don't have S-1s and we've never paid any charges on UK rental income. Still waiting for a reply from the tax office from this year's avis, where we were charged, but suspect we may have missed out a box.

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Re: Social Charges On UK Rental Income

Post by Debra »

Le Démerdeur wrote:
Sun Sep 01, 2019 9:45 pm
I'm pleased that you have benefitted Debra, nobody deserves it more than you, knowing your situation I am confused as to how you came to have an S1 though, where can I get one? :D
It's been a pain having to chase my ex to renew it every year so it's nice to finally see a benefit from having one :)

I have no choice. I don't work here and my ex, who now works in the UK, pays child support for our son of more than the UK child benefit amount per month (80 odd quid) and so we are considered his dependents and therefore entitled to an S1 as family of a UK worker - even though I divorced him in 2015.

If I started work here or started a business, I'd lose the S1. It's been such a pain I've considered starting a small business unnecessarily (such as putting my furnished rental income through an AE) but I'm glad I didn't now :) I've often spent half the year without health cover, collecting those brown forms for when the renewal comes through and they backdate my attestation, but HMRC are getting quite efficient at producing it now and the procedure for my ex to apply is more simple too - just in time for them to be possibly stopped by the brexit mess.

You may remember from the old forum that I had a right fiasco when I split with my ex - France basically removed me from 'the system'. No healthcare, no child benefits, nothing. It took me 2.5 years to get back in - with France and the UK arguing over who was my competent state. This despite me already supposedly 'automatically' having permanent residence rights. SOLVIT helped me with it all and that's the first time I was advised to get a cds permanent, to avoid such problems in future. The whole experience was why I was well placed knowing EU law when the brexit referendum happened - and that prompted me to follow the old SOLVIT advice and get the card. Glad I did, knowing the experience I had before and especially now I wouldn't have enough income to get a card in a no deal brexit (I don't have to prove income now because I already have a permanent resident card). I have to say CPAM acted professionally and let me straight into the CMU - once I supplied all the same info I had to produce to get the card. Once the competent state question was resolved I just sent them the S1 I received from HMRC and was back in with that.

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Re: Social Charges On UK Rental Income

Post by Debra »

By the way it's a weird way to 'benefit' because last year we understood we could reclaim social charges previously taken (still can - I need to chase them up on that because last I emailed they said they were waiting for another court case result) and they wouldn't be due at all from then on - and then France did the sneaky change to where the funds were allocated so we still have to pay 7.5% - but it's better than 17.2%. Just in time for the year I finally gave up on holding onto my old Standard Life shares too :) (those given to certain customers when they went public).

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