Abatement for UK earned rent advise

[Aly]

I understand that any rent earned from UK property is taxed in the UK but declared in France for the taxe efectif.

The gross earnings figure is entered on the French return and the French apply an abatement. Is this still 71% or is it affected by the new rules for meubles tourisme.

[parsnips]

[quote user="Aly"]I understand that any rent earned from UK property is taxed in the UK but declared in France for the taxe efectif.

The gross earnings figure is entered on the French return and the French apply an abatement. Is this still 71% or is it affected by the new rules for meubles tourisme.

[/quote]

Hi,

     It's not as simple as that; I have had long arguments with the tax office on behalf of a friend. The procedure is to declare the rents and UK tax deducted and allowable expenses (UK) on form 2047 page 4 sec VII and transfer the net to 2042 page 4 box 8TI (added to any other exempt income like govt. pensions). The forms don't allow for claiming the micro BIC or micro foncier abattement. I finally advised my friend (who lets unfurnished in UK) to make sure that his UK tax and expenses come to at least 50% of the gross. By the way the 71% abattement only applies to gites , not to normal un-furnished lets , which are 50%.

    As these rents are not actually taxed in France, and their effect on the final tax bill is marginal, I'd be surprised if the french tax people would bother to query a reasonable looking declaration.

[Aly]

Thanks for the reply. Whats the difference between letting furnished or unfurnished in terms of treatment by the authorities.

[parsnips]

[quote user="Aly"]Thanks for the reply. Whats the difference between letting furnished or unfurnished in terms of treatment by the authorities.

[/quote]

Hi,

    For unfurnished rents under 15000€ pa. the microfoncier regime may be applied------abattement 30% of gross before tax.

      "      furnished   "       "        32100€  pa the micro BIC             "                "     -------       "         50%            "            

      "      gites and tourist lets          "                   "                       "                        "--------      "         71%            "          ( this only applies to registered gites in France.)

    Hope this helps

    Pat    

[Aly]

Thanks alot really helpful and clarified things for me