French income tax on UK property rental

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Hal
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French income tax on UK property rental

Post by Hal » Tue Apr 24, 2018 11:28 am

I no longer use an accountant as my income is straight forward now and I got fed up with how he appeared to work for the government and not for me. So, I am after some advice please.

I have a very small flat in the UK that brings in maybe 120 per week. It is currently in the name of another family member who pays tax on it. She is now due to retire but with her pensions, this little flat will take her into higher earner tax status so she either wants me to take on the fiduciary responsibility or sell it.

HMRC have given me permission to have all my UK source income paid gross on the basis I pay tax in France, so I assume they will extend the arrangement to this. So my question is, what will the tax/social be on say, £6,000 of rental from a UK property in France - and where is it declared on the income tax return?

Dare I ask: as there are no credits to take into account, is it maybe as simple as just adding the amount to my overall earnings?

I cannot seem to find an exact answer on t'internet and got bored trying to find one. So if anyone here can shoulder the burden with an answer, certainly a bottle of good red in it!

vic evans
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Re: French income tax on UK property rental

Post by vic evans » Tue Apr 24, 2018 6:47 pm

As nobody else has replied I've asked my missus 'cos she does our returns.
1/ Rent will have have to be declared on UK tax return but your allowance will offset this if it's the only income of this type. Rental income on UK property is,( in theory, ) not taxable in France
2/Rent will also be declared on French return , form 2047 page 4 section 6 & then transferred to main form 2042 page 4 section 8 box 8 TK
3/ Rent gets added to other income for Tde H & to calculate tax bracket
4/ credit for tax supposedly paid in UK is credited to you but actually not 100% so you end up paying a bit of tax in France
5/ Social charges should not be paid on UK rental income

That's how she explained it to me so hopefully I got it right. Who's name is property in? Don't forget capital gains tax if it's sold.

Hal
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Re: French income tax on UK property rental

Post by Hal » Tue Apr 24, 2018 7:15 pm

Thanks Vic - particularly on where and how to declare it. I was particularly interested in the social charges that might be applicable. Apparantly many have had them applied for whatever reason so interesting in your comments on this.

I am though interested in your theory that UK rental income should not be taxable though. A brief conversation with HMRC, who are due to get back to me, indicated as the rental was so low, it comes under the personal alowance by a long chalk and therefore they might be happy I receive the money gross and do whatever I do over here.

Currently the flat is in her name, but she wants out so it will have to revert back to me, hence my questions to get it right.

vic evans
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Re: French income tax on UK property rental

Post by vic evans » Tue Apr 24, 2018 7:59 pm

Hal wrote:
Tue Apr 24, 2018 7:15 pm
Thanks Vic - particularly on where and how to declare it. I was particularly interested in the social charges that might be applicable. Apparantly many have had them applied for whatever reason so interesting in your comments on this.

I am though interested in your theory that UK rental income should not be taxable though. A brief conversation with HMRC, who are due to get back to me, indicated as the rental was so low, it comes under the personal alowance by a long chalk and therefore they might be happy I receive the money gross and do whatever I do over here.

Currently the flat is in her name, but she wants out so it will have to revert back to me, hence my questions to get it right.
We have an office building in UK which is let out. It's in joint names & our combined allowances mean that although we declare it on our UK tax return we do do pay UK income tax on this. We do not pay French social charges on UK rental income but understand that some foncs. interpret the rules incorrectly. It could be because we have an S1 but not sure. As far as we are concerned, although the French do some sort of 'fiddle' with the UK rent & don't give a 100% credit it's much cheaper to deal with the UK rent under this system rather than pay full French tax on the additional income so it works well for us.
I think you will need some good advice if your family member is going to just 'hand over' a property to you which is at the moment in their name. Future capital gains if you sell it springs to mind .

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