handy38

Hi all, thanks again for all the messages, Can people confirm if they are are deducting the UK income tax personal allowance e.g. 11,500 (2017 tax year) to obtain their net rental for 4BA, 4BL and 8TK? For the last two years, I have been reporting a net rental income on my french tax return without deducting any personal allowance(s) (I've only been accounting for *allowable/deductable expenses*.).

Daft Doctor- In your message you mentioned that you calculate the taxable UK property profit (rental income minus allowable expenses) *before* deduction of personal allowances. Like the basic personal allowance for UK tax residents of approx. 11,000 GBP? (apologies if I have misunderstood). Deducting the allowance of approx. 11,000 GBP would make a HUGE difference to the reported net income value. This would mean many people would be reporting values of zero for net rental income on the Fr tax return.

CatharTours and Parsnips, thanks for the advice I understand that the UK rental income (after allowable deductions) is taxed in the UK and not in France. I also understand that the value contributes to the final taux effectif, which is used to calculate the tax due in France? If this is correct, then depending on the UK rental income, which can be quite substantial for some, this could change which tax bracket (taux d'imposition) your taxable french income falls into? Perhaps I am wrong here. Thanks

Hi parsnips, yes, of course I received the email and plan to correct my form. Much appreciated. I declared as I did (as discussed in PM), not based on what I read on the internet, but based on the local tax office and two lengthy meetings with different tax advisors. I was instructed to declare as I did using 2042 and 2047. This discussion was looking for the best but correct and legal way to report UK rental income from a furnished property. I am not interested whatsoever in "having my cake and eating it" or dodging tax, and if this is insinuated in any messages on this forum, then its a bit ridiculous. The origin of these messages came from reading on the internet that the MicroBIC form could also be used to declare for UK rental properties but it now seems that this is not correct. That is good to know. Thanks for the constructive comments.

Brittin-Bretagne, you are again talking about allowances when I am talking about deductions (e.g. expenses and costs incurred during the rental of the property). Two different things. Also, when you talk about declaring profit, are you talking about the profit or the net income after allowable deductions? Profit is very different to a declarable net income. Even if we are only taxed in the UK on the rental income, I am suprised it is considered normal to declare values in the UK based on the UK tax year and and to declare values in France which are based on the UK but not French tax year. It doesnt seem logical but if it is commonly accepted, it is a convenient approach.

Thank you for the informative response Daft Doctor. It is interesting that some people are declaring taxes in France based on the income generated during the UK tax year as opposed to the french tax year (the calendar year). The tax years are of course very different. Brittin-Bretagne. There appear to be different ways to declare UK rental income (at least, that is what I thought) depending on whether the income is less than 15,000 euros, furnished or unfurnished. As I understand, there are different ways to account for the expenses incurred. I understand the final rental income figure is not taxed (and social charges are not incurred) but it does however contribute towards increasing the "taux effective". Daft Doctor- If I have interpreted the Avis D'Iimpot from last year correctly, i did not previously pay social charges (as expected). Pointing this out retrospectively sounds like a nightmare. If social charges were incorrectly applied to UK rental income, where would this be accounted for on the Avis? Second page under Prelevements Sociaux? Thanks to all for the discussion.

I'm not an expert but I am declaring my rental income in both the UK and France each year.

Thanks for the information. Obviously the link I provided was written with respect to income from french properties. There are other links e.g. on UK rental income: https://www.frenchentree.com/france-forum/topic/uk-rental-income-again/, with advice from a user "parsnips" that "If let furnished you declare as micro-BIC- location meublée- on form 2042 Pro. For now I will stay with the classic 2042 and the 2047 for foreign income forms which I completed after several meetings with my local tax office. Thanks again

Thanks for the response. I have read here and elsewhere (e.g. https://www.impots.gouv.fr/portail/international-particulier/questions/taxation-property-income-0) that it is ok to report rented furnished property on the 2042c Pro as a "non-professional" in boxes 5ND, 50D and 5PG. I don't have a siret, hopefully this wont be a problem. (I also note that the rental income on 2042C Pro is the gross rental income (not the net rental), so it seems that I will be listing a gross income value after all. ) Is it correct that box 8TK on 2042 concerns only foreign income that was taxed outside of France?

Hi all, Last year I declared my UK net rental income after deductions (equal to about 30% of the gross income) on 2042 Box 8TL and again on 2047 in the section 8 "Revenues Exonérés Retenus Pour Le Calcul Du Taux Effectif". My gross rental income is in excess of 15000 euros. I note that I left 8TK on 2042 empty. After reading various posts, it looks like I would be better off to declare my UK rental income (furnished property) via the 2042 C Pro. It seems this way I can get a 50% deduction. If I declare via the 2042 C Pro, do I enter the net rental income after the 50% deduction on 2042 Box 8TL and the same value on 2047 Section 8? This is what I'm inclined to do. But is it correct to not include a gross rental value? And what about Box 8TK on 2042 for people using the micro-BIC 2042 C Pro for declaring rental income from a furnished property? Any help would be much appreciated, best regards