French CSG rates for rental income

[nicky57]

I have just visited our local tax office to complete our 2009 tax return for rental income relating to an apartment we own. I am a UK resident and work in the UK. I had to complete a pink form declaring my UK salary. Does this affect how much CSG I will pay on the rental income and if so does anyone know what the tax bands are? If not, why do they need this information? My french is basic and I think a lot of the explanation I was given was lost on me! Thanks very much.

[Pickles]

As a non-resident, you do not pay CSG. The reason why they want your UK income is that you pay either:

A flat tax of 20% of the taxable French income

OR

Tax (on French income only) at a rate determined by assessing your total worldwide income under the French tax rates, IF this would result in a tax rate lower than 20%.

Regards

Pickles

[nicky57]

Hi Pickles

Thanks for your quick reply.  That's useful to know.  I remain somewhat confused though as the lady circled the CSG and indicated that this was what I would be paying!  I wonder if you could help me out on another worry - on form 2047 (the pink foreign income form), because I was doing it from memory I entered my tax free allowance wrongly by 3000 euros (I entered 10 000 euros rather than 7000). Do you know whether this difference is important, ie whether I need to contact the non-residents tax office in Paris to correct it?  Also I did not provide information (was not asked) on the percentage tax I paid on my UK income but wonder whether this is required?

Thank you  - next time I will take along an interpreter!

Nicky

 

 

 

[Pickles]

[quote user="nicky57"]Thanks for your quick reply.  That's useful to know.  I remain somewhat confused though as the lady circled the CSG and indicated that this was what I would be paying!  I wonder if you could help me out on another worry - on form 2047 (the pink foreign income form), because I was doing it from memory I entered my tax free allowance wrongly by 3000 euros (I entered 10 000 euros rather than 7000). Do you know whether this difference is important, ie whether I need to contact the non-residents tax office in Paris to correct it?  Also I did not provide information (was not asked) on the percentage tax I paid on my UK income but wonder whether this is required?[/quote]

You should not have been asked to fill in form 2047 - this is a form for French residents who are in receipt of income or capital gains from abroad. It sounds as though the tax lady has assumed that you are French resident (in terms of your main residence being in France) and that you are receiving payments from the UK - which is not the case. Basically, assuming that your income from lettings is less than 15K€ and that the lettings are non-furnished, (ie you are eligible for the micro-foncier regime) then the only form that you need to fill in is 2042 (plus 2042C if the total of your worldwide income is such that if you were resident in France, you would be taxed at a rate less than 20% - which I think is around 30K€). If the lettings are furnished, then you need to fill in 2044 as well.

The document that details the requirements is notice 2041E

Regards

Pickles