We landed in France 10th Jan 2025. On jan 31st annual interest of several hundred pounds was paid on a UK Building Society account.
The account runs from April to April.
Sounds unfair to have to include all of it.
At the time we moved we had sold up main household.
Any advice please? We are due to see an accountant. Wish I’d started this a month ago!
I hope I’m right
Résumé
- if not, @George1 will say so - but for the French tax year in which we became resident I pro-rated interest over the period from which we became resident.
So in your case I would have worked out the period the interest covered - say 1 Feb 25 to 31 Jan 26 - and worked out 22/365 of it. Then converted it to €, using the January conversion figure.
… I wasn’t 
Thanks Porridge. I clarified with the building society. The interest was paid for the period of 31st Jan 24 to Jan 31st 25. So I was only in France 21 days relevant to that interest.
Unfortunately the period over which the interest was accrued is irrelevant. If you’re French resident on the date of receipt,.it’s fully and exclusively taxable in France.
3 Likes
Oops - thanks, @George1
In my case, I was dealing with monthly payments of interest rather than one lump paid at the end of the year, so I think I would be all right.
Apologies @MichaelL for confusing things.
Sorry, but that’s the system.
Oh well. Hopefully being taxed as a household will be better for us overall. Thanks for your help folks.
AI tells me I won’t pay tax on my uk rental income . It is under the £12500 allowance. I’m very sceptical.
That’s probably correct but as usual it depends on a few things.
You certainly won’t pay tax (or prélèvements sociaux) on it in France because UK rental income isn’t taxable in France.
And you won’t pay tax on it in the UK if - when combined with any other UK-taxable income you might have - it amounts to less than the personal allowance.
I agree with your AI and (of course !)@Helenochka. France will expect you to declare the income but will neutralise any French tax liability, including as @Helenochka says prélèvements sociaux, by giving you a French tax credit equal to the French liability on that income. It will take the rental income into account when determining the tax due on your other income eg pensions. As far as France is concerned/requires, that rental income is taxable (even if not actually taxed) in the UK in line with the tax treaty, see below..
My statement was poorly worded. I knew any taxation on rental income would take place in the UK but I wan’t sure if the personal tax allowance would be withdrawn by HMRC.
Ah. Well, they haven’t withdrawn ours and we’ve been in France nearly 30 years. I’m sure you’ll be OK.
We never did. It was a good reason for having the property in the UK and being able to use (in our case) the £25,000 allowance, because the property was in our joint names.
Edit: sorry, repeating what’s already said.
Looking ahead, another advantage of having it in both names and keeping each person’s rental income below the £20k mark, is that you’ll be able to avoid the requirement for quarterly reporting which I believe is coming in for annual gross rental amounts over £20k from April 2028.
Provided you are a UK or EEA citizen, you are entitled to a UK personal allowance, regardless of your residence status. Relax!
2 Likes
Agree. It is one of the few nice “benefits” of the tax treaty.
The watchout if you have uk rental income and do a tax return is to make sure you do it right. Dont make the mistake of just using the hmrc software for your uk tax return as it doesnt complete the non residents pages. Which if you are french tax resident is sort of important…
It’s all paper for us as this is our first French tax return. It’s just as well nearly everyone now uses online inputs. We’ve run out of printer ink and not much paper left.
When it comes to doing your UK return (if you haven’t already) I would definitely advise against submitting it on paper. A colleague insists on doing this and twice now it seems to have gone astray.
As Paul says, you can’t file direct on the HMRC site. I use 123 efiling. There was a glitch this year which meant I could hardly type anything in the “white space” but they quickly fixed it when I messaged them through the Chat function.
I used 3rd party software like you Helenochka.
1 Like
Can anyone tell me how to enter my NS&I premium bond account details for impots. I need to know what to call it on the 3916 form - the tick boxes. Accountant isn’t sure.