Question about double taxation and UK rental income
Discussion
My daughter lives in France, is a French tax resident but has kept her UK flat that she rents out to pay for her rental flat in Paris (it's almost cost neutral).
She is getting the UK income allowance so pays relatively little UK tax on that rental income, particularly after deductions.
BUT the French tax man is asking her to declare UK rental income. He is saying that he won't tax it but that the UK rental income may have an impact on her French income tax band for the rest of her income as it will be added on.
In other words he won't charge her but he will in effect, probably, and even if indirectly.
Has anyone got any experience of the above ? It's difficult to assess how bad this will be for her. Her income is around €80k plus roughly £14k of net rental income after deduction.
A bit gutted for her as she is only renting out for mobility purposes, not profit/income.
I found this online: "UK Property Rental Income
Rental income from a UK property, when resident in France, still requires the completion of a UK tax return.
As a result of the UK/France double tax treaty, income tax and social charges are not payable in France. However, it is important to note that this income is still declarable in France and is taken into account when establishing the tax bands applicable for all other declarable income."
She is getting the UK income allowance so pays relatively little UK tax on that rental income, particularly after deductions.
BUT the French tax man is asking her to declare UK rental income. He is saying that he won't tax it but that the UK rental income may have an impact on her French income tax band for the rest of her income as it will be added on.
In other words he won't charge her but he will in effect, probably, and even if indirectly.
Has anyone got any experience of the above ? It's difficult to assess how bad this will be for her. Her income is around €80k plus roughly £14k of net rental income after deduction.
A bit gutted for her as she is only renting out for mobility purposes, not profit/income.
I found this online: "UK Property Rental Income
Rental income from a UK property, when resident in France, still requires the completion of a UK tax return.
As a result of the UK/France double tax treaty, income tax and social charges are not payable in France. However, it is important to note that this income is still declarable in France and is taken into account when establishing the tax bands applicable for all other declarable income."
Edited by nickfrog on Sunday 19th February 22:29
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