Mortgage tax relief on French mortgage

[tuppence]

Hi

I have a small mortgage with a French bank. Can I claim tax relief on this? I have had the mortgage for just over a year and it is on my permanent residence in France. I am not very knowledgeable on these things as I have previously had interest only in the UK. I have read an article recently that states that as a non tax-payer or a low tax-payer I can claim the amount I would have got had I been a 'higher' tax payer. [8-)] Has anyone on here had this sort of 'problem' and if so how do I go about claiming the tax relief?

thanks

tuppence 

[parsnips]

[quote user="tuppence"]

Hi

I have a small mortgage with a French bank. Can I claim tax relief on this? I have had the mortgage for just over a year and it is on my permanent residence in France. I am not very knowledgeable on these things as I have previously had interest only in the UK. I have read an article recently that states that as a non tax-payer or a low tax-payer I can claim the amount I would have got had I been a 'higher' tax payer. [8-)] Has anyone on here had this sort of 'problem' and if so how do I go about claiming the tax relief?

thanks

tuppence 

[/quote]

Hi,

   Relief is available on loans taken out after 6 May 2007, to purchase the principle residence (you therefore must be french resident);

      It is 40%  of the interest paid in the first year-starting from the date at which the funds were first made available,then 20% of the interest in the 4 following years.

      The top annual limit is 3750€ for a single person or 7500€ for a couple.

       To claim you send  your declaration 2042 with the total of interest entered at box UH on page4,together with:

             1. A duplicate of the "acte d'achat " of the house.

             2. A signed declaration that it is your principle residence.

             3.A calendar of repayments(provided by your lender)

If you wish to claim for the year 2007 you can write with all these documents requesting a revised assessment for that year. 

[tuppence]

Thanks for the information Parsnips. I presume that I have to send all the details on my next tax return in May 2009???I have looked at a 2042 form but can't seem to find a box marked UH. All of the other documents you mentioned I have, so presumably I send a copy (as opposed to the original).

Many thanks for your swift response,

tuppence

[parsnips]

[quote user="tuppence"]

Thanks for the information Parsnips. I presume that I have to send all the details on my next tax return in May 2009???I have looked at a 2042 form but can't seem to find a box marked UH. All of the other documents you mentioned I have, so presumably I send a copy (as opposed to the original).

Many thanks for your swift response,

tuppence

[/quote]

 

Hi again,

       Look on the back page of a form 2042 (for revenus 2007), it's the last line above- 8:DIVERS, near the bottom of the page.It reads "Interets des emprunts contractés pour l'aquisition de l'habitation principale réalisée à compter du 06-05-2007".

       If you wish to claim for interest paid before 01-01-2008, you can ask for a reassessment, otherwise claim on your next declaration in 2009;