Advise on Tax return

[Aly]

How do you marry up the UK tax return with the French tax return. For example if moved to France in July return is for months to Jan.( six months)

UK return is done April to April. Assuming still doing returns for UK declaration i.e. rental income etc.  The UK tax paid  obviously then needs to be declared on French return. Does one need to get a UK return done to show what's due

to coincide with the period covered by the  French return or can this be done by calculation. Hope this makes sense?

[andyh4]

I have always done the French return by actual numbers for the period Jan to Dec.

[mint]

Me too.  And it's only the first year that you might have to do a bit of apportioning.  After that, it's a cinch.

[cooperlola]

You don't actually need to show the French authorities any proof unless you are audited.  Thus you just declare any payments/earnings etc received after the date of your move on your French return.    As Sweets says, it's actually a cinch and very logical.

[parsnips]

Hi,

      You do show tax paid in the UK when you declare UK rents in France  (and/or government pensions , if appropriate). You show the gross rent, the UK tax paid and  any expenses on form 2047, page 4, sec VII, and transfer the net total to form 2042, page 4, box TI (exempt income).

[cooperlola]

Quite so, Parsnips![:$]  I will adjust my post.

[seb47]

Hi Parsnips,

So would we declare expenses incurred on UK house rental in column 6 ("montant des charges afferentes au revenu ... y compris frais reels")?

This is something we missed in previous years.

Presumably this would be the same amount (in euros) that we set off against UK rental income.

[parsnips]

[quote user="seb47"]Hi Parsnips,

So would we declare expenses incurred on UK house rental in column 6 ("montant des charges afferentes au revenu ... y compris frais reels")?

This is something we missed in previous years.

Presumably this would be the same amount (in euros) that we set off against UK rental income.[/quote]

Hi,

     Yes, that is what you put there. If you think it would make a significant difference to the tax you have paid in past years , you can reclaim, going back 3 years; the effect will vary with the relevant size of the rents , your french taxable income and the expenses . Here is a simple example;

French taxable 20000€        rent 10000     (no expenses deducted)=30000 .notional tax due 1522  ....1522x20000/30000 = 1014€ tax due on french liable income.

          "             20000€         "     10000  - 3000expenses=7000=   27000.notional tax due 1102........1102x20000/27000=816 -decote31=tax due 785€

The difference may not be as great as in this example, but you can use the 2042 notice self calculator to check your own figures.

[seb47]

Many thanks - we'll do the sums to see if it's worth reclaiming, but will certainly make sure expenses are shown in future.

[Mikep]

The good news is that you get a full year's allowances in each country. For example, if you moved at the end of August, you would declare income in the UK for April to August and have one year's UK allowances to offset against it. You would then declare your income for September to December in France, and have another full year's French allowances to offset.

The timing's a bit tricky, as you have to get the French tax authorities to fill in a form and send it on to HMRC before they will accept that you're released from further obligations to declare and pay in UK.