tax

[fussy]

hi everyone, another tax enquiry, we are friends with a couple who are in their 70s, been living in france since july 2006, we were talking about paying tax here the other day, and they told me they havn't been to the tax office because they don't pay any tax in england, they don't have any investments, they only have their pensions, which in england is below the personal allowance, they do however, both have their carte vitale, I don't know whether they are doing the right thing re the tax office here, also if they do'nt go how will they pay their tv licence. thanks in advance.

[Nick Trollope]

Social charges, TV licences and "tax" are all different items.

They will have their CV's because they are UK pensioners with E121s. They pay their TV licence (if they are due to pay one) with their Taxe d'Habitation.

However, they must complete a tax return for 2006 (or rather they should have by 31/5/07), regardless of whether they think they will need to pay tax, or not. Everyone has to do one. Get them to visit their Hotel des Impots.

 

[fussy]

thank you nick, what are the repercussions if they don't, they just will not be told, they keep saying that I am wrong because they don't pay tax in england

[derf]

I think the main problem will arise if they have to sell the property, or one of them dies, they may not be classed as residents and possibly have to pay CGT depending on how long they have owned the property.

They do have to declare their income/pensions to the French tax office no question.