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Tax Implications of Owning In France

 
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doleawg



Joined: 28 Mar 2007
Posts: 6

PostPosted: Mon Jul 13, 2020 3:09 pm    Post subject: Tax Implications of Owning In France Reply with quote

If you are a UK tax payer and own in France and submit a tax return in France, when declaring that in the UK via self assessment do you get taxed again?

TIA
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SPJ



Joined: 28 Dec 2015
Posts: 432
Location: Aquitaine

PostPosted: Mon Jul 13, 2020 3:50 pm    Post subject: Reply with quote

No, because there is a Double Taxation Agreement between the UK and France which is a treaty between two or more countries to avoid international double taxation of income and property
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doleawg



Joined: 28 Mar 2007
Posts: 6

PostPosted: Mon Jul 13, 2020 4:01 pm    Post subject: Reply with quote

SPJ wrote:
No, because there is a Double Taxation Agreement between the UK and France which is a treaty between two or more countries to avoid international double taxation of income and property


Thanks, so inputting the details on a self assessment form is advisory to HMRC, it won't get me a bill?
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SPJ



Joined: 28 Dec 2015
Posts: 432
Location: Aquitaine

PostPosted: Mon Jul 13, 2020 4:16 pm    Post subject: Reply with quote

I can't possibly advise you - I have described the principle. I suggest you talk to an accountant or tax adviser. My OH is a retired a/c and even so, no way does he attempt to do his own tax between France and the UK. He has someone who stays up to date with the latest tax legislation do it for him.
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paolo



Joined: 17 Jun 2004
Posts: 3960
Location: Provence, France

PostPosted: Mon Jul 13, 2020 6:40 pm    Post subject: Re: Tax Implications of Owning In France Reply with quote

doleawg wrote:
If you are a UK tax payer and own in France and submit a tax return in France, when declaring that in the UK via self assessment do you get taxed again?

TIA

No, and yes...you will end up paying the higher tax rate of the two countries for your circumstances. For example you may be on the abattement of 71% in France, meaning you are only taxed on 29% of rental income there. If for example you are in the 40% tax band in the UK, then you will have to pay HMRC the difference between what you pay in France and the 40% rate. This is complicated by the fact that the French abattement does not allow any deductions, whereas for UK declaration you will deduct your outgoings.

On the other hand, if you pay more in France than would be due in the UK, then there is nothing more to pay in the UK.

But talk to an accountant, ideally one specialising in both French and UK tax.
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