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Hi All,

From reading through the forum posts, there seems to be a lot of confusion regarding where and how to declare UK rental income. You all seem to be very well versed in French/UK tax affairs so hoping you can set some things straight for me.

I currently work in France so I’m a tax resident but have a furnished UK property that is rented out. I have already declared my income to HMRC. After expenses, I don’t pay any tax in the UK due to my personal allowance. My gross rental income per year is approx £11,000.

I’ve declared my French income on form 2042 but do I also have to declare my rental income in the same form? I'm aware of form 2047 that allows me to declare my UK rental income but I’m confused whether or not I need to enter the gross amount or the net amount post expenses and in what boxes - oh so many boxes!

What effect does this have on my tax liability in France? Do I need to mention the double-taxation treaty somewhere?

Thanks a lot for your help – I need to get this sent off before midnight! :-(
 

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Any foreign source income you disclose on a 2047 is declared both on the 2047 form AND on the 2042 (or one of the annexes to the 2042 form). That's one of the first tricky things to get used to with French taxes - there are several items you wind up having to declare in a couple different places.

Rents are "revenus fonciers" and so belong in section 4 of the 2047 form. The instructions then say that you should report these revenues on form 2044 just like they were French rentals, including the address of the property.

Instructions for the 2047 form say that if these revenus are subject to the ever-popular "tax credit at the French tax rate" (depends on the tax treaty), you then carry the amount reported to either line 4BK (micro foncier) or 4 BI (régime réel) for rental income. If they aren't subject to the tax credit then you report them on line 4BE (micro foncier) or 4BA of the 2042 form.

Might be easier for you to download the instructions (Notice in French) for form 2047 from the Fisc website. The part you're looking for is on p. 4 of the instructions relevant to Cadre 4 of the form.
Cheers,
Bev
 

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Discussion Starter · #3 · (Edited)
Hi Bev,

Thanks for getting back to me so quickly! I haven't entered anything in form 2044. I believe that is for French rentals.

I simply entered the gross income in boxes 4BE & 4BK and then added this to both 8TK on form 2042 and 2047



Have I done it right? I don't want to be taxed on 2 amounts. Is there nowhere to enter the amount after expenses? Or is this calculated by the French impots at 30% reduction?

So confusing...

Thanks
 

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I've never done revenu foncier using the "micro fonciere" regime, but I believe this is one of those things where they just "assume" a certain %age of expenses. As far as I know, if you go micro-fonciere, you don't need the form 2044, but you may want to take a look at the instructions for the form 2047.

Yeah, you report the same income in a couple different places. That's just how the system here works. It sounds like you're on the right track. And last year, when I had to report foreign source pension income for the first time, someone from the tax office called me to ask for the details - even though it was a piddling amount I had reported - so they could do the calculation correctly.

Go with what you have, and in September when your avis comes back, if you think you have somehow been charged twice, go in to see the tax office. We've had them correct errors or misunderstandings (ours or theirs) before. They're generally quite reasonable about it all.
Cheers,
Bev
 

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Hi all,
I'm coming to this a year late but I have a very similar situation with rental income in the UK that is declared but which falls below the tax threshold in the UK with the rent just covering the mortgage. So zero tax paid in the UK = zero tax credit in France, but somebody did tell me you can deduct mortgage interest. Is this true -- and if so, where would you write that on this extremely complex form? Thanks
 

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Hi all,
I'm coming to this a year late but I have a very similar situation with rental income in the UK that is declared but which falls below the tax threshold in the UK with the rent just covering the mortgage. So zero tax paid in the UK = zero tax credit in France, but somebody did tell me you can deduct mortgage interest. Is this true -- and if so, where would you write that on this extremely complex form? Thanks
Hi,
The tax credit given in France has nothing to do with tax paid or not paid in the UK (although some dumb french tax agents don't seem to know this). The credit given is equal to the extra french tax which would be due if the rents were not exempted by article 6 of the double tax treaty (2008).
If the let is unfurnished , and the rent is less than 15000€ pa. it can be simply declared (gross)at section 4 ,4BE and 4BK, and then at 8TK .(an automatic 30% allowance is given).
If you want to deduct your expenses , including mortgage interest you must declare under the complicated form 2044 and then transfer the net to sec.4 on 2042. See here;

https://www.pap.fr/bailleur/choisir...a1247/location-vide-optimisez-votre-fiscalite
seehere
 

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Hi,sorry for hijacking this thread but I'm confused and hope someone can help! My question is twofold:
1) We started renting out a property in the UK in Jan 2018. I've read elsewhere that the french tax authorities like us to use the figures from the UK tax assessments, so for the french tax return do I just use the figure from my UK tax 2018 assessment (i.e Jan - 5/4/2018)? I'm concerned because this would only be 3 months whereas if done on an actual basis for the 2018 French tax year it would obviously be 12 months. I have worked it out exactly on a month by nonth basis so have the twelve month figures but am now wondering what I should do.
2) My annual gross rent would normally be more than €15,000 (although the net profit is less than €15,000) so where do I declare this on the french tax form, which form and which boxes?
 

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Hi,sorry for hijacking this thread but I'm confused and hope someone can help! My question is twofold:
1) We started renting out a property in the UK in Jan 2018. I've read elsewhere that the french tax authorities like us to use the figures from the UK tax assessments, so for the french tax return do I just use the figure from my UK tax 2018 assessment (i.e Jan - 5/4/2018)? I'm concerned because this would only be 3 months whereas if done on an actual basis for the 2018 French tax year it would obviously be 12 months. I have worked it out exactly on a month by nonth basis so have the twelve month figures but am now wondering what I should do.
Actually, what you should be doing is to report the actual rents for the calendar year period - see PARSN1PS instructions about where to report these things in the message above.
2) My annual gross rent would normally be more than €15,000 (although the net profit is less than €15,000) so where do I declare this on the french tax form, which form and which boxes?
If the gross rent is more than 15,000€ you'll need to use form 2044. The form looks kind of daunting, but the first time through is the worst. You may want to look into buying a copy of ClickImpot, which will guide you through the forms and put everything on the proper line/box on the 2042 form for you.

But generally speaking, you'll use p. 2 of the 2044 form. The lines there indicate where you subtract your expenses. And then, you report the net result on form 2047 (foreign source income) in section 4. This is the sort of thing where it's a whole lot handier to use ClickImpot than to try to trace all the amounts to and from all the lines they are supposed to appear on.
 
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