Tax on Gite rental

[Gaskelldj]

I have completed rennovation of my house in the Dordogne and set everything up to rent it out as a holiday home this summer. I have some bookingd already! 

I live in the Uk and would welcome any advice on the taxation of rental income, what expenses and charges can be offset e.g. can mortgage interest raised against my UK home be allowed against the rental income, what about local french taxes - tax d'habitation etc - then there is the costs from the letting agent, gardening, repairs, changeover costs, linen, utilities.

Any good books or websites anyone can recommend?

dave. 

[Isobel]

Hi Dave,

I'm in exactly the same situation. I can't give you any help, just interested in any answers you get. I've remortgaged, also bought in Dordogne and ready to let this summer. No bookings yet though. I'm near Bergerac, where are you?

Isobel

[CatherineS2]

I live in the UK and rent out a house in Normandy.

I use the services of a UK-based accountancy firm who specialise in French taxation. They prepare my year-end accounts and tax return (for both French tax, and the bit of my UK tax return concerned with the rental property).

It costs me £400 p.a. and some people may throw their hands up in horror and say what a waste of money, you could do it yourself - but this gives me peace of mind and quite frankly life's too short... at the end of the year I just send them a breakdown of my receipts and outgoings and then a few weeks later I get a copy of my tax form which they send in to the French authorities for me. (So far I haven't paid any tax because I haven't made a profit).

They can advise on all things taxation and if you want their name/address, please PM me. 

To answer some of your questions, we are able to offset all the mortgage interest against our income, but this is because our mortgage is a French one, raised against the French house. I don't know whether you can do this if your mortgage is against your UK property. The accountant would be able to give you advice.

Also, I know that if you make a loss in your first years, these can be offset against any future profits which you may make.

Hope this helps!

 

[alpinenick]

Hi CatheineS2

I am alos in the same situation and wondered if you could let me know the details of your tax accountant

Many thanks

 

[CatherineS2]

Have sent details in a private message. If anyone else wants these details, please PM me.