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UK dividend income - declaring in 2019 tax return


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They've gone and changed the forms again!

We have a small income in the UK from a tracker fund. The dividends amount to around 4000 euros a year.

To date I have filled in the dividend section 2 form 2047 with the figures and in the line "impots supporte a l'etranger" i put in 10% of the total, being the notional tax credit in the UK. This has always been accepted by the Impots.

This year I (perhaps foolishly) followed an article in the Connexion as Section 2 of the 2047 had changed. The article said that the "impots supporte a l'etranger" should usually be left blank... so I did so.

As a result the Impot have come back to me with required corrections as follows.

1- REVENUS DE CAPITAUX MOBILIERS (RU) :Vous avez porté dans votre déclaration n°2047 (revenus de sources étrangère- Royaume Uni) la somme de 4XXX€ (dividendes) sans reporter cette somme à la case 2DC de votre déclaration n°2042K et sans indiquer le montant de l'impôt payé au RU. Je vous rappelle que la convention fiscale internationale signée entre la France et le R U prévoit une imposition des ces revenus à l'impôt sur le revenu et au prélèvements sociaux en France avec l'octroi d'un crédit d’impôt est égal à l’impôt effectivement supporté à l’étranger, dans la limite des taux prévus par cette même convention et sans pouvoir excéder l’impôt français ( dans votre cas la convention plafonne le crédit d'impôt à 17,7 % /Royaume uni/France)

I am okay with completing box 2DC on form 2042. Where I am stuck is calculating the " le montant de l'impôt payé au RU." as I am now questioning my previous method (which was the one our accountant used several years ago).

So, in a nutshell - how to do I calculate the le montant de l'impôt payé au RU. - when we didn't, in effect, pay any tax in the RU as our income there doesn't exceed our personal allowance? Is the notional 10% tax credit the correct way to do it?

Thank you oh wise ones.
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"Corrections attendues sous huitaine (déclaration n°2042 K d'ensemble) : 1- report en 2DC : 4453€ 2-préciser le montant de l'impôt que vous avez payé sur la somme de 3783€ (Dividendes)/reporter à la case 206 ( Impôt supporté à l’étranger) et à la case 8VL de la déclaration n°2047 et 2042 C"

Here are the corrections that the Impot have asked me to make. I've left the actual figures in this time, past caring!
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Don't forget if your paying tax at source in the UK to ask for it back. My father didn't do this for many, many, years and paid tax twice. I am now in the process of getting the tax taken at source on his UK savings and bank account back. There is a form for UK/France


It is interesting to see what you can claim tax back on.
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Chocfish - Just read your two posts on this thread and am now really confused.

1.Where does the 3783 come from and where is this entered?

2. For the "preciser le montant de l'impot ........ " what goes in there? Last year I just entered 0.

The more I look at the forms and read posts the more confused I get.
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Tell me about it! It makes my head hurt. We had an accountant do our tax return about 6 years ago, and since then I've faithfully followed his method. But this year they've changed the line numbers / structure of Section 2 Form 2047 and I didn't know where to put what. So I looked online, found the Connexion article which seemed to explain it, and followed that - though it was a bit different to the way I'd been doing it previously.

Our accountant told us to enter the 10% notional UK tax credit in the " impots supporter a l'etranger" box. The Connexion said it should be zero. Doing the latter seems to have upset the Impots so they've asked me to correct it...but now I am questioning whether I should in fact have been entering 0 in there all these years... and I don't know what to put now!

BTW 3783 euros is the amount we received (line 203). This is multipled by 17.7% (line 204), to give 670 euros (line 205). This 670 euros represents the tax credit we should receive in France (I think).

If I put 378 euros (10% of 3783) in line 206, then the electronic form chooses the lesser amount between lines 205 and 206 to be the "credit impot a retenu" (line 207).

Then these are added together (line 208) to give 4453 euros (if line 207 = 670).

If OTOH I put 378 euros in ligne 206, then this goes into line 208 and the total revenus in line 208 will be slightly less. I can see how the form works - I just don't know how to work calculate the numbers to go into it!

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Thank you - will have another go at the figures over the weekend - my brain hurts! The treatment of dividends causes me a problem every year - last year Parsnips answered my query and I followed his advice - and was going to do the same this year but then with the change in line nos. etc I started over-thinking the whole thing and ended up not knowing what to do.

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I cant help with the line numbers as i have not yet got round to doing my returns. But your accountants 10% changed a few years ago with changes in UK tax. The notional tax credit rate for the UK is in the 2047 notes, it has been 17.7% for a few years.
You start with the amount of dividend received, you gross up (x 1.177) this gives you the dividend to declare which will be taxed at french rates. You then claim back the UK tax, the notional tax, as tax credit,ie actually received less gross above declared.
There was some discussion on the forum way back when in the past about what the notional tax was ie the uk tax credit on the dividend slip. But it is more complex than that. Personally I go with the flow of the Fisc as thats what I can support.
Cash received x grossed up by Fiscs deemed rate = Dividend declared. Tax credit for UK tax = the amount of the gross up.
Hope that helps and does not confuse.

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Thanks John... I will try working through your method. The confusing bit for me is that the forms have changed. But i'm guessing that 2DC should be calculated in the same way, irrespective of where it goes in the form now?
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Had a quick look at this years form, not too dif from last years. Just a bit of shuffling. So it likes below.

Form 2047
Line 203 Cash dividend received
Line 204  17.7%
Line 205  Cash Dividend x 17.7%
Line 207 = Line 205
Line 208 = Line 207 + Line 203
 Then go to section 7 and complete the relevant boxes ending with the tax credit going in the bax right labeled 8vl.
Hope that helps.


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Thank you. Just to make sure I get it right, at last :

Line 206 - what goes in here?

Section 7 the "revenu avant deduction de l'impot etranger" is this the actual Cash dividend received ie the same as line 203.

What goes in the impot etranger (8VL) - is that the 17.7%?

Just wanted to add that I am not normally this dense!
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No you are not being dense the whole thing is very unclear. At the risk of confusing you, it can be approached in two ways either by applying the 17.7% and dealing with it as I proposed. Or ignoring the 17.7% and only the cash dividend.
The way I laid out was the way i will and have been dealing with it. Maybe Parsnips has another take on it.
For your questions

Line 206 = 0

section 7 cash div   = + 17.7

8vl = 17.7

rgds JFB

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Well, I was wondering where box 8VL had gone on the 2047, last year it was under box 2DC in section 2, but now I see that is has moved to section 7, I certainly did not fill out anything in section 7 last year, if indeed it existed, and everything was accepted.

Could somebody please confirm that I am interpreting things correctly. Like John I have been using the 17.7% tax credit every year, and every year it has been accepted without any trouble by the tax office. So now with the section 7 that I am now confronted by is this correct?

Plus-Values et Revenus de Capitaux Mobiliers:
  The actual dividend total

Revenu Avant Déduction de L'Impôt Étranger:
  The actual dividend total + the 17.7%

Impôt Payé à L'Étranger:
  The 17.7% tax credit, which then generates the figure in box 8VL automatically


confused about box 206. Each year I have left the box blank, which then

generates the 17.7% tax credit in box 207, after completing boxes 203-205. If I enter 0 in box 206 as

suggested in this thread, the computer accepts this as the smaller

amount, and the whole tax credit is wiped out, thus no 17.7% tax credit.

So when 0 is mentioned does this mean to leave the box blank?


one to go, should I be going anywhere box 276 which reads: Crédit

d'impôt égal à l'impôt étranger sur revenus exonérés des impatriés À

reporter au cadre 7
, and enter the tax credit figure in there as well?

In previous years I have never put anything in this box, or is this a

new box for this year?

Sorry if all the above seems a bit dim, but with all the changes to the tax form this year to take into account, I have been getting a bit stressed out about things this year.

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Thought I would look back at previous discussions re treatment of dividends and found post written by Parsnips on 12/05/2017 which says:

If you would only read the instructions on the form you would see that you enter the lesser of 17.7% or "the actual tax borne in the UK". So you don't use 17.7% for 2016 income, you use the actual figure which is around 11.1%. However , 2017 tax certificates show 0 tax credit , so on the face of it you should enter "0" on the 2047 and 2042 for tax credit .

When I looked at 2016 and 2017, I found that the tax credit appeared to be based on a reduction of the" dividend rate " used by the company to calculate the dividend payable. So any tax is paid by the company. I have written to one of my investment holders asking for clarification on this , and also to what taxes their profits , on which the dividend is based , are subject. It would seem to be that the 19% corporation tax must impact on the dividend. I think that, based on that ,one would be justified in claiming the default credit of 17.7% next year. The form 2047 asks for the actual foreign tax which the the dividend has borne, not what tax has been paid abroad by the declarant.
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I follow the same as in the Parsnip quote by fittersmate.

What I've never understood is whether the grossing up could cause your total pre-tax income to be higher which could take you in to a higher tax band or whether it was ignored in that calculation?
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Thanks for clearing that up John, like yourself I will leave box 206 blank, as I have always done.

It would seem that different people on here all have different ideas as to how the tax credit should be treated. I agree that no tax has been paid by an individual directly on the share dividend, but some tax will have been borne by the company, as parsnips pointed out in the past. So personally I am applying the full 17.7%. This means that social charges will be paid on the tax credit, but a tax credit will be given against your French income tax, I think!

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Yes that is the position I have taken. The UK tax credit was always based on the fact that the dividend was paid out of profits that had already been taxed. It was calculated by the revenue to reflect that fact and not on income tax rates. Hence why it is difficult to workout why 17.7% on the net which equates to a tax rate of 15% on gross I think. Why those rates I have not been able to get an answer.

Personnally I will continue as before.

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