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Tax Implications of Owning In France

Posted: Mon Jul 13, 2020 3:09 pm
by doleawg
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

Posted: Mon Jul 13, 2020 3:50 pm
by SPJ
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

Posted: Mon Jul 13, 2020 4:01 pm
by doleawg
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?

Posted: Mon Jul 13, 2020 4:16 pm
by SPJ
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.

Re: Tax Implications of Owning In France

Posted: Mon Jul 13, 2020 6:40 pm
by paolo
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.