Benefit in Kind

[danny]

If we move into our sons apartment in France and rent out our own, what are the tax implications of such a proposed move.

danny

[idun]

I don't think I quite understand this question.

If you rent out your UK property then UK taxes will have to be paid, after your tax allowance ofcourse.

Re France, well, you will have to  register to pay taxes in France, if not pensioners with S1's, then I would assume that you would have to prove health care and probably income, but how this will play out what with brexit, well, some things seem to be speculation at the moment.

[danny]

Clearly I have not provided sufficient information. I do apologize.

Additional Information.

We are both resident in France for the past 16 years and pay all of our taxes in France.

Our two sons bought an apartment in 2006 for holidays in the same building as us.

Both our sons are non resident, however they are both registered for income taxation in France and pay small amounts each year in taxes on summer lettings as they have registered their apartment with Gites de France and obtain the 71% discount on rental income.

Our health has gone south ( Cancer ) over the past year.

Our sons have suggested that we move into their apartment as it is bigger and better than our own.

We have found a prospective tenant for our apartment commencing November 2020, that rent will of course be declared to the fiscal authorities. However with the reduction of the 17.2% social tax to 7.5% solidarity tax is an advantage.

The loss of tax  to the french authorities is minimal as very little is paid by our sons.

In addition the taxe Habitation currently being paid by our sons would essentially be eliminated as we would have to change our permanent address to their apartment. We would of course have to continue to pay the taxe Foncia on our apartment.

Our fear is that if we do as indicated above, would our sons be taxed on some form of notional rent.

Danny.