French tax forms for rental income received in the UK

[Gaskelldj]

I have rented my home out in the Dordogne for the 1st time in the past year and the income received (less than £7000 and all received in the UK) has been declared to the HM Customs along with my employment earnings. However, friends tell me I also have to declare the UK income to the French tax people who I wrote to last week and they agreed that I do indeed have to fill in their form and sent me Form 2042 to fill in. Anyone tried to fill this form in? - not easy but Section 8 looks like a possibility but nowhere to show costs for anything e.g. security, insurance, gardening, laundry, changeovers, breakages etc. Is there a set deduction (%) for costs that is given or do I need to show every item and send receipts for everything?.

Any help/advice greatfully received.

Dave G.

[Sabina]

Even though you were paid in UK for renting out your property in France, it is income earned in France and therefore is taxed in France.

Because your French income is small you will be taxed in Fance under the Micro BIC scheme - you are taxed on a portion (approx 30%) no matter what your expenses, which you don't need to tell them about.

Very simple - just enter the income from French letting on 2nd page of form 2042C, section C, box NO (revenus imposables). Ideally this should be in euros - you need to convert you sterling - official rate for 2005 was 0.6853

Any tax you pay in France then needs to be included on your UK tax return under Foreign section but you can also claim loads of expenses for your gite on your UK tax return. I find the UK form more difficult to complete than the French one!

Hope this helps.

You will probably find more if you search this topic on the forum.

Sabina

[Gaskelldj]

Sabina,

 

Thanks very helpful to know I can be part of the Micro BIC Scheme but ... I don't seem to have the right form then - I have form 2042  - 'Declaration Des Revenues 2005' which the French tax office sent to me. Assume form 2042C is different as I can't find a section C or a box NO. I will try tem again.

Dave G.

[Sabina]

Dave

My first reply was based on 2004 form - have just found ones for 2005 and the form I referred to now has 2042 CKB-DPR in top right hand corner.

The bit I filled in was the same - bottom of page 2, section C, box NO

I have always had 2 forms sent, 2042 and 2042C.

Have you had a notice that the tax office has moved?

Their new details are 10 rue du centre, 93463 Noisy le Grand, France.

Tel: 01 57 33 83 00

e-Mail: [email protected]

Sabina