Paying tax on French rental income

[Benjamin]

The following situation does not appear to be covered by the Tax FAQ's (I understand why).

An acquaintance rents out a couple of properties here and submits a tax return to the French tax authority. He receives a detailed statement from the letting agent which indicates the boxes in which to enter the various amounts (gross rental income, mortgage interest, repair costs etc.) The agent actually went through his first return with him. The income comes from two properties he owns jointly with his wife.

From figures that he briefly gave me it appears that they are not receiving any French personal allowances (parts). Is this correct?

 

[Pickles]

If your friends are UK-resident, then they do not get the benefit of any French personal allowances, as (for the level of income that I presume we are dealing with) this is negated by the requirement on those not resident in France to pay a minimum tax of 20% of their taxable income before allowances (but after deductable costs).

Regards

Pickles

[Benjamin]

[quote user="Pickles"]If your friends are UK-resident

Regards

Pickles

[/quote]

Thank you Pickles. I tried to cover every bit of info I thought necessary and then missed the UK resident bit! Bozo.  [:D]

[Pickles]

I suspected that they might be UK resident. There is a possible get-out: if their total, worldwide income is such that if declared to the French Fisc (ie as if they were resident in France) it would result in a tax rate lower than 20%, then the lower rate would be imposed.

Regards

Pickles