Good morning. I inherited some money from my late father’s estate in the UK. I invested most of it in UK NS&I bonds. This year is the 1st year I have to declare it on my French Tax return. I have no other income & my friend says I have to declare it stating where it came from. I just read that “Flat Tax (PFU): Shares, bonds, and standard investment accounts are taxed at a flat rate of 30% (comprising 12.8% income tax and 17.2% social contributions)”. Will I lose 30% of this interest or is there a personal CGT allowance & I do not use any of the Income tax allowance so is this taken into account? Many thanks.
You will need to declare this on the foreign income form 2047 and the main return form 2042. On 2047 (“interets…”) you declare source as ‘Royaume Uni’ and report the amount gross in € at the date of receipt or you can use an average exchange rate for the year if you have regular receipts of interest.. The same figure is reported on 2042 in 2TR. Fully taxable in France. You also need to declare the account in the overseas accounts section of 2042, which used to be a separate form but is now consolidated into 2042.
The flat tax rate for 2026 is now 12.8% tax and 18.6% prélèvements sociaux ie 31.4% total (assuming you don’t have a form S1 which reduces the prélèvements sociaux charges).
As George says. Box numbers can change but look at 2TS/TR. There is a choice somewhere to select flat tax PFU or individual.
But do you really have no other income? As there is a nil tax band of €17,595.