Bank Interest - 2012 Declaration

[lyndros]

I am doing my first Declaration Des Revenue this year (2012) in respect of my income for that part of 2011 from when I became resident in France.

Part of my income during that period includes Bank Interest from my UK Bank Accounts.(in respect of which I have already paid 20% UK Tax) . So my questions are:

(a) Do I declare this (as a global sum) on Form 2047 Page 2 Part IV 2 B - "Autres reveus de valeurs mobiliéres et evenus assimilés", under the Section entitled "Interés". - I have no other income relevant to the other Sections of this part

(b) In Column 5 thereof, should I put in a gross sum (thereby including the UK tax I will have paid ), or a net sum. The advice on the internet seems to vary, and the Form itself says "Montant Net Encaisse en Euros". If I put the gross sum in, can I assume that the only way to avoid double taxation is to later reclaim my UK Tax back from HMRC (which means doing this every year, as not all my banks use the Form R105 procedure).

(c) Whatever sum I put in (whether gross or net) should I then also put 11.2% into Column 6  (being the relevant percentage for the UK stated by the Form) and then do a calculation (multplying Column 5 by Column 6) and put in the resulting figure in Column 7 for the "Credit Impot". If YES, what function does this "Credit Impot" serve, as if it is intended to compensate me for the 20% UK Tax that I have already paid, then it doesn't. If NO, can I assume that I just leave Columns 6 and 7 blank.

(d) I assume that the Column 5 sum gets transferred to TS at the bottom of the page, but is TA also relevant (my French is not that good).

(e) At the bottom of the page it states "Chacun Des Montants TS.......Est A Reporter Sur La Declation Des Revenus". Can I assume that the TS figure goes into Form 2042 Page 3 Section 2 Box 2TS . Also, what does "8 Ligne TA" refer to at the bottom of the Form 2047 page?.

I will need to declare my bank accounts on Form 3916. Bearing in mind that I came to live in France part of the way through 2011, should I include accounts that were open but then closed before I arrived. 

Lastly, I understand that there is a Form 2042C for investment income which has suffered tax deduction at source. Does this cover my UK Bank Accounts, or is this only relevant to French investments (including French Bank Accounts).

I would be grateful for any help that members can give.

Lyndros

[parsnips]

[quote user="lyndros"]I am doing my first Declaration Des Revenue this year (2012) in respect of my income for that part of 2011 from when I became resident in France.

Part of my income during that period includes Bank Interest from my UK Bank Accounts.(in respect of which I have already paid 20% UK Tax) . So my questions are:

(a) Do I declare this (as a global sum) on Form 2047 Page 2 Part IV 2 B - "Autres reveus de valeurs mobiliéres et evenus assimilés", under the Section entitled "Interés". - I have no other income relevant to the other Sections of this part

(b) In Column 5 thereof, should I put in a gross sum (thereby including the UK tax I will have paid ), or a net sum. The advice on the internet seems to vary, and the Form itself says "Montant Net Encaisse en Euros". If I put the gross sum in, can I assume that the only way to avoid double taxation is to later reclaim my UK Tax back from HMRC (which means doing this every year, as not all my banks use the Form R105 procedure).

(c) Whatever sum I put in (whether gross or net) should I then also put 11.2% into Column 6  (being the relevant percentage for the UK stated by the Form) and then do a calculation (multplying Column 5 by Column 6) and put in the resulting figure in Column 7 for the "Credit Impot". If YES, what function does this "Credit Impot" serve, as if it is intended to compensate me for the 20% UK Tax that I have already paid, then it doesn't. If NO, can I assume that I just leave Columns 6 and 7 blank.

(d) I assume that the Column 5 sum gets transferred to TS at the bottom of the page, but is TA also relevant (my French is not that good).

(e) At the bottom of the page it states "Chacun Des Montants TS.......Est A Reporter Sur La Declation Des Revenus". Can I assume that the TS figure goes into Form 2042 Page 3 Section 2 Box 2TS . Also, what does "8 Ligne TA" refer to at the bottom of the Form 2047 page?.

I will need to declare my bank accounts on Form 3916. Bearing in mind that I came to live in France part of the way through 2011, should I include accounts that were open but then closed before I arrived. 

Lastly, I understand that there is a Form 2042C for investment income which has suffered tax deduction at source. Does this cover my UK Bank Accounts, or is this only relevant to French investments (including French Bank Accounts).

I would be grateful for any help that members can give.

Lyndros

[/quote]

Hi,

     answers as follows;

a)yes

b)yes

c)no, this is for dividends only.  Your UK bank interest is taxable ONLY in France once you are resident-you should contact HMRC about reclaiming the UK tax.

d)yes TS ........TA not relevant ,only refers to Dividends.

e) yes TS.........TA not relevant

You don't need 2042C as it again is only for Dividend credits.

[lyndros]

Thanks.

Some clarification though please on the question of UK dividends. It is suggested elsewhere that these should be declared in Form 2047 Page 2 Section IV (2A) ("Dividends éligibles à l'abattement de 40%"), rather than Section 2B. What do you think -  it seems logical, as Section 2A refers to "Dividends" while Section (2B) refers to , inter alia, "Interéts".

Whatever Section applies

(1) Do I put into the relevant Column 2 or 5 the amount of Dividend actually paid to me, or do I also add the UK Tax Credit?

(2) Do I need to declare the Dividends on Form 2042C, or does this just relate to French Dividends.

Lastly, where would you put Premium Bond winnings on Form 2047 - on Page 2 Section IV (1) Box GO (as is suggested elsewhere), or Page 2 Section IV (2B)

Regards

Lyndros

[parsnips]

[quote user="lyndros"]Thanks.

Some clarification though please on the question of UK dividends. It is suggested elsewhere that these should be declared in Form 2047 Page 2 Section IV (2A) ("Dividends éligibles à l'abattement de 40%"), rather than Section 2B. What do you think -  it seems logical, as Section 2A refers to "Dividends" while Section (2B) refers to , inter alia, "Interéts".

Whatever Section applies

(1) Do I put into the relevant Column 2 or 5 the amount of Dividend actually paid to me, or do I also add the UK Tax Credit?

(2) Do I need to declare the Dividends on Form 2042C, or does this just relate to French Dividends.

Lastly, where would you put Premium Bond winnings on Form 2047 - on Page 2 Section IV (1) Box GO (as is suggested elsewhere), or Page 2 Section IV (2B)

Regards

Lyndros

Hi,

     Dividends in 2A ,(follow instructions on form)  calculate 11.2% tax credit , declare net div + 11.2% at 2DC on 2042 , claim 11.2% credit on 2042C boxTA         The UK tax credit on dividend statement is not entered anywhere.

You'll find all this explained on form 2047

Premium bond winnings 2047 page 2 sec B "interets" then 2042  box 2 TS

[/quote]

[lyndros]

Thankyou for your reply on this particular point. The only relevant box I can find on Form 2042C is 8TA on the last page. ('Revenu à la source en France.....ou impot payé à l'étranger').

Is this where I put the 11,2% tax credit?.

[parsnips]

[quote user="lyndros"]Thankyou for your reply on this particular point. The only relevant box I can find on Form 2042C is 8TA on the last page. ('Revenu à la source en France.....ou impot payé à l'étranger').

Is this where I put the 11,2% tax credit?.

[/quote]

Hi,

 Yes.