Q French Tax Return - UK Rental

[Boff]

Hello

I receive UK rental income which I declare via my UK tax return each year.  The total falls below the allowances and therefore I do not get a demand for tax.

My question is on form 2047 section VII you have to enter an amount in column 5 for the amount of tax paid on the income.  Do I just put 0 or leave it blank, or am I filling it in wrongly.  Should I be entering the gross amount in section 4 and then ALL my expenses (mortgage interest etc etc) in section 5.

If anyone is in the "same boat" please could you confirm what you do.

Thanks

[Will]

I may be wrong - it's a while since we had UK rental income while French taxpayers, but you need to declare this income in France whether or not it has been taxable in UK; the amount you enter as 'income' on the form should be the 'real' income, i.e. gross amount less allowable costs. As you have not been taxed on it in UK, enter '0' for the tax paid.

Under the double taxation agreement you should not be taxed on it again in France, but it is taken into account when adding up your total income to determine your taxation band in France.

[Boff]

Hello Will

[quote user="Will"]I may be wrong - it's a while since we had UK rental income while French taxpayers, but you need to declare this income in France whether or not it has been taxable in UK; the amount you enter as 'income' on the form should be the 'real' income, i.e. gross amount less allowable costs. As you have not been taxed on it in UK, enter '0' for the tax paid.
[/quote]

Yes you are right I do need to declare the income, I just needed to know what figures to put in columns 4 and 5.

Thanks

[NormanH]

I believe that column 5 is only about tax, not about expenses etc, so in this case it would be 0.

[parsnips]

[quote user="NormanH"]I believe that column 5 is only about tax, not about expenses etc, so in this case it would be 0.

[/quote]

Hi,

      Expenses go in column 6 "montant des charges afférentes .......etc"

[cooperlola]

I know that your question has been answered, Boff,  but just to remind everybody, the tax FAQs at the top of this board answer this and many other queries on the subject of filling in tax returns:

http://www.completefrance.com/cs/forums/1196188/ShowPost.aspx

[Andy81]

Hello,

Am I right in thinking that the amount to put in the box on 2047 vii "total a reporter ligne 8 ti " should be "montant brut" less " montant des charges" ie. net income in English? If so, is this the amount which will be used for the calculation of "taux effectif"?

Also, what exchange rate to use when converting from gbp to eur?

Thanks, Andy.

[parsnips]

[quote user="Andy81"]Hello,

Am I right in thinking that the amount to put in the box on 2047 vii "total a reporter ligne 8 ti " should be "montant brut" less " montant des charges" ie. net income in English? If so, is this the amount which will be used for the calculation of "taux effectif"?

Also, what exchange rate to use when converting from gbp to eur?

Thanks, Andy.[/quote]

Hi,

    The answer to the first part of your post is yes and yes .

If you know the actual  BoF rate for the day you received the rent (in the UK) you should use that (find it on www.xe.com)

     Only if you don't have it ,use the "tax office" rate. This year different offices are quoting different rates---the lowest I have seen is 1.07 the highest 1.12297.  Take your pick --but be able to justify it -just in case you are asked to.

[Andy81]

Thanks Parsnips,

As I understand it, montant brut or gross is income less charges/ expenses etc, and net is this same amount only with tax taken off.

In my case, domiciled in France, to calculate the taux effectif, they take your French earnings ie. what you are paid each month into your bank account ( brut less charges but no tax taken off )and the uk rental profit ( rent less all charges and tax ). Is this correct?