Paying tax twice

[Krill]

I receive rent from property in the U.K and pay U.K tax on it, I also have a Gite here that I received rent from last year, I have been told that I will have to pay French tax on both the U.K and the French  property but will be able to claim the tax already paid in the U.K back at a later date, is this correct, is it just one of those strange French things to use even more time, paper and postage or do I have it wrong?

Any advice much appreciated

 

[Musicmonkey<ADDRESS><STRONG>Musicmonkey<STRONG><ADDRESS>]

I think you need to specify where you are resident as this will make a difference to the reply.

 

[Krill]

Sorry, resident in France

[Will]

If you have already paid tax in UK, you should be able to indicate this on your French tax return, by entering the amount of income in the appropriate box, so that you don't get taxed again. Most people seem to find it better to receive UK rental income free of tax, as a foreign resident. I'm not a tax expert by any means, and as MM says, it's not possible to give a definitive answer without knowing all the facts.

[Krill]

When we had a house rented out in England, we used a rental agency who would normally deduct a proportion as tax. There is a form you can get from the Inland Revenue which, in effect, authorises the agent to pass on the whole amount to you because you are not resident in UK, or not liable for tax for some other reason. It doesn't stop you having to declare the income (in both countries) but can rather simplify things - that's my understanding anyway. And it might have changed now.

[Will]

I don't know what happened there - Krill asked about not paying tax on rental income and my reply appeared over the top of the question.

[Hereford]

These answers basically corrct.  Property income is taxed in the country of origin.  You will have to declare the UK rent on a form to Ex-pat deptin the UK. Whether it actually suffers any tax will depend on the amount (i.e. above or below your UK allowances).

You also put the amount on your French tax return on the back page at the bottom (box TI)  Also on form 2047 (foreign income) in section VII: you describe it as Revenu foncier.  If you have had to pay UK tax you also put this amount.

You will not pay French tax as such but the figure is taken into account to determine tax paid on the balance of your income in France.

We found all this out earlier this year in order to do our own return for 2003. The tax office are very helpful and will check that you have put things in the right box.

H.

[Krill]

Thank you all for the help, much clearer now