TAXATION

[Gillybean]

Could someone inform me if there is a plain english format of the tax situation between France and England and the best way to deal with ones taxes. We will be renting our property out in England, I will have no income until retirement but husband takes a pension, has investments, premium bonds and disability allowance. Any advice on the best way to go forward. Getting through to husband that we need to sort this is difficult!!! GILL

[LesLauriers]

[quote]Could someone inform me if there is a plain english format of the tax situation between France and England and the best way to deal with ones taxes. We will be renting our property out in England, I w...[/quote]

If your husband has UK investments such as ISAs and PEPs and premium bonds, then you should be aware that all of these are taxable in France. The sale of shares for example over 15000€ in any year renders the full 15000€ liable to tax, even if sold at a loss!

In your circumstances you would be well advised to contact someone like Siddalls, Blevins Frank or PKF Guernsey for proper financial advice as there is much that can be done to reduce your liability to tax, particularly if you act before you leave the UK.

Similarly you can reduce your liability to inheritance tax if you act before arriving in France.

The tax situation for non resident landlords is described in the inland revenue web site and can be found by doing a search for "non resident landlords".

Good luck.

[steve&becky]

Hi Gill

I'm certainly no expert, but I too am looking into these issues at the moment. If you are classed as a french tax resident (ie, you live permanently in France) you must declare your worldwide income (including any pensions, investments etc) to the french tax authorities. A 'double tax treaty' exists between France and England whereby you can claim a tax credit in France for taxes paid in England, however beyond that I am still trying to find out more information. It is clear that professional advice should be sought and if I find anyone who can help I will let you know. I have found an interesting website www.frenchentree.com which has a few good articles under the Legal & Tax, and Health headings. I would also be interested if you find anyone who can assist in these matters.   Becky Birch

 

[Tonias]

I had a very strange conversation this morning at our local Tresor Public. I had gone down to the office to handover my final payment for my 2003 income tax and the guy behind the counter said to me 'So you've chosen to pay tax in France then'.

I looked a bit bemused and said that it wasn't a question of choice, I had to pay my income tax here!

He said, no, as an EU citizen, you can choose to pay income tax on your french income in the UK, or whichever is your country of nationality.

He said that I should enquire at my regional Centre des Impots.

I'm going to write to them but I have never heard anything about this before, and it all sounds a bit strange to me.

Any comments or has anyone heard anything about this?

thanks

[LesLauriers]

[quote]I had a very strange conversation this morning at our local Tresor Public. I had gone down to the office to handover my final payment for my 2003 income tax and the guy behind the counter said to me '...[/quote]

My limited experience has shown me that the people working in the tax offices have varying degrees of knowledge, different tax offices interpret the rules differently and within the same office you can get different opinions on the same question.

Recently a friend told me that the staff at the Tressorie fell about laughing when she enquired about a TV license, their view was that viewers of UK TV did not require a French TV license yet there have been numerous postings on LF to the contrary.

I would enquire for sake of your own peace of mind, but do not hold your breath! 

[Teamedup]

It isn't the tresorie that deal with tv licences anyway, it is the Centre de la Redevance de l'Audiovisuel, so the tresorie were not competant to make any comment what so ever about this.

[LesLauriers]

[quote]It isn't the tresorie that deal with tv licences anyway, it is the Centre de la Redevance de l'Audiovisuel, so the tresorie were not competant to make any comment what so ever about this.[/quote]

Possibly so but they did, and therefore it is another example of lack of knowledge on behalf of "authorities" . That said I am sure I read that there is a plan to make them responsible.

[Boiling a frog]

The staff at the Tresor are only tax collectors and know nothing about tax legislation.You would be as well listening to a man in a pub or a barrack room lawyer.

[Miki]

[quote]The staff at the Tresor are only tax collectors and know nothing about tax legislation.You would be as well listening to a man in a pub or a barrack room lawyer.[/quote]

.......or even a Chinese person speading little whispers perhaps !!