Tax on a UK Letting

[baralbion]

I am grateful to those who have commented on my question about income tax on letting a French property. May I now put the reverse case? If I live permanently in France and let my house in the UK, I believe I would be liable to French tax on the income from that letting.  But is it, I wonder, ever possible instead to pay tax on the income to the UK's Inland Revenue in these circumstances? I will, possibly through gritted teeth, pay whatever tax I have to, but I should prefer to continue to deal with a tax regime with which I am familiar. Otherwise, I can see a situation in which I may already have paid UK tax through my letting agent in the UK which I would then have to claim back after being obliged to pay tax in France as well.

I realise these are matters on which I should eventually have to seek professional advice. But any general guidance would be helpful.

 

 

[Owen]

Hello,

If you are a French resident but have letting income from the UK then the UK retains the right to tax this income (and does so!). You still have to declare this income to the French tax authorities and tax paid in the UK is offset against tax liability in France. In practise this means that for the vast majority there is no more to pay. Like the UK there are various expenses that you can deduct from the gross income but they differ slightly from those in UK which, along with the different tax years, means that the net income declared will be different in France to the UK but the result will usually be fiscally neutral.

Regards

Owen

[baralbion]

[quote user="Owen"]Hello, If you are a French resident but have letting income from the UK then the UK retains the right to tax this income (and does so!). You still have to declare this income to the French tax authorities and tax paid in the UK is offset against tax liability in France. In practise this means that for the vast majority there is no more to pay. Like the UK there are various expenses that you can deduct from the gross income but they differ slightly from those in UK which, along with the different tax years, means that the net income declared will be different in France to the UK but the result will usually be fiscally neutral. Regards Owen[/quote]

 

Thank you. That's very clear - and not unencouraging.