We have recently received a demand for our tax and social charges. The tax is likely ok but they have applied social charges to our income from rental in the UK . This income is declared in the UK (with tax paid there) and so should not attract such charges here. Can anyone tell me where to find the relevant guidance on this (in French) to which I can refer the official at the local tax office here? We intend to visit them asap to clear this up.
Hi,
Here is a link to the treaty in french;
http://www.ambafrance-uk.org/IMG/pdf_convention_france-ru_francais.pdf
;- direct the agents attention to article 6 ârevenus immobiliersâ which clearly states that any such income is taxable in the state where the property is sited.
article 24 part 3 explains how such revenues (âtaxable in or taxable only in the UKâ) are exempted by a system of credits.
article 2 specifies that contributions sociales are covered by the treaty.
Thank you for that, we went to the local office today and after some checking it was agreed that we did not have to pay.
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Can I resurrect this topic with a stupid question. We also rent out our property in the UK-but as the rent is below the personal tax allowance we donât pay tax on it in the UK. We too have this year (2019) has-for the first time in 8 years doing tax returns) has social charges applied. My husband got his S1 late last year but due to circumstances it wasnât presented before the end of the tax year. So 2 questions:- firstly does the fact that although we declare the rent in the UK and thereâs no tax payable affect the social charges and secondly does the fact that he has an S1 which hadnât been given to CPAM affect the social charges? Sorry if these are stupid questions but I canât figure out why after 8 years theyâve suddenly applied them.
We were also hit with social charges this year on our UK rent but after a visit to the tax office have had them wiped, my guess is the Impots are just trying it on as we know many other people whoâve been affected in the same way.
Hello,
My understanding is that if you are resident for tax purposes in France then you are not liable to pay the social charges on your UK rental income. We challenged this and it was accepted straight away. I donât think that itâs a âtry onâ but simply that the french tax return doesnât make it clear.
Iâm sure that lots of people have been caught out with this as well as continuing to pay UK tax on private pensions, all when resident in France.
Itâs always worth going back to the Tax Office and asking them the question (whatever) about your Declaration and subsequent Avis dâImpot.
Mistakes do happen both on their side and on ours⌠