Social Charges On UK Rental Income

Debra
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Re: Social Charges On UK Rental Income

Post by Debra »

lindal1000 wrote:
Sun Sep 01, 2019 9:52 pm
We don't have S-1s and we've never paid any charges on UK rental income.
You still shouldn't. Having the S1 only means you pay less social charges on investment income which IS taxable in France, which UK rental income isn't.

Le Démerdeur
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Re: Social Charges On UK Rental Income

Post by Le Démerdeur »

It could not have happened to a more deserving person Debra :good:

I was only joking about getting an S1, I knew there would be some insolite reason for you having one being of working age, if I had one I could not cope with only paying 7.5% of 29%, its embarrassing enough paying what I do at present but that is the system.
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Re: Social Charges On UK Rental Income

Post by Debra »

I only get a 50% tax allowance because it's a long term furnished rental but I'm not embarrassed when it's payable this year when I suddenly have no UK rental income again! Also my son's uni bourse is based on income from two years ago so this year and next it'll be bad even though current income is low. Weird system.

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Re: Social Charges On UK Rental Income

Post by Le Démerdeur »

Last 2 years I have had a small taxable liability which they have written off as it was less than €1K, with the drop in chiffre d'affaires I probably wont ever pay it.

Looking forward to when my longest stay tenant comes to pay his rent tomorrow as regular as clockwork, 3 years boy & man, looking forward to seeing his reaction when I tell him that there has been an evolution in his rent and from now on he will be paying €50 a month less :good:

I never put it up from day 1 and he already pays less than anyone renting in the last 2 years but I am dropping all the tarifs so still want to recognise and reward his fidelity, he is saving up to buy somewhere so the money will be well spent.
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Re: Social Charges On UK Rental Income

Post by AmandaJ »

Debra wrote:
Sun Sep 01, 2019 8:57 pm
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).

Hi Debra,

Thanks for this information. Yes, I did include it in boxes 4BA, 4BL and 8TK. The figure I put in 8TK was higher than 4BA/BL as it also includes a small UK wage (I go back to UK for a few days each month to do a bit of work). I wonder if this would have confused things?
I also ticked boxes 8SH and 8SI as we both have S1s.

Our Avis d'impot has the correct tax deduction re 'credit d'impot sur rev étrangers' on page 2
Page 3 in the Prelevements Sociaux section lists the bank interest and uk rental income
The total of these 2 is then cancelled out for the CSG and CRDS in the relevant column but the column for the Prel Sol is not cancelled and then is charged at 7.5%

I've been reading up on it all morning and although I haven't found definitive French based info on our particular circumstances what I have read does only seem to mention the 7.5% being payable on French rental income.

Does anyone have any advice on what I should do next? Is it worth a trip to the tax office to discuss it with them in case it can be sorted easily without having to resort to an appeal?

Any help or advice much appreciated.

Amanda

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lindal1000
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Re: Social Charges On UK Rental Income

Post by lindal1000 »

AmandaJ wrote:
Mon Sep 02, 2019 11:45 am






Does anyone have any advice on what I should do next? Is it worth a trip to the tax office to discuss it with them in case it can be sorted easily without having to resort to an appeal?

Any help or advice much appreciated.

Amanda
We sent them an email querry and got a response saying it was being dealt with. I guess if we don't hear back soon we will write another one or write a letter. I would imagine they are a bit busy at the moment.

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Re: Social Charges On UK Rental Income

Post by AmandaJ »

Thanks, I'll try that as a first step.

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Re: Social Charges On UK Rental Income

Post by Debra »

I agree - if I have any queries I always send a secure message from my online account (email when I didn't have access to that for a while) and they're always very efficient with dealing with enquiries - and you have the benefit of having their response in writing.

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Re: Social Charges On UK Rental Income

Post by AmandaJ »

Hi again, sorry my head is spinning :? with this.

I'm going to send a query to the impots. After re-reading one of your comments Debra I've noticed that you said your Prelev de Solidarité (PdS) on the uk rental income was calculated and then cancelled out by application of the credit d'impot revenus etrangers rather than the Base Imposable being reduced to zero by 'Revenus non assujettis' (as with the CSG/CRDS)

As we have only been charged the PdS I think that maybe my query shouldn't be 'why have you charged social charges (sepecifically PdS) on our UK rent' and should perhaps say 'I think the PdS should have been cancelled by credit d'impot revenus etrangers'

This is only our second year of sending in a return, and last year they didn't want any money off us, so there was nothing to query.

Basically my question is, should I be quite specific with my query and suggest a correction or word it more generally to say 'I don't think we should have been charged PdS please can you look into it for us'

Thanks once again for any advice.

Amanda

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Re: Social Charges On UK Rental Income

Post by Debra »

I'd just say 'I realise my rental income is taken into account and therefore the pds is calculated but I believe it should be then cancelled out on this part of my income by a credit, since the income is not actually taxable in France'.

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