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Tax on rental income from holiday home

Posted by Patsam - Created: 3 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by Patsam - 3 years ago

Thanks Jo for the links - the form looks straight forward but I do need to try and tie down the 50% or 71% "abbattement" which has been variously mentioned - my costs look as though they would well exceed the 50% so I'm beginning to question viability.

Hence I will try and have at least one conversation with a proffessional before I go ahead.

Many thanks indeed for your help.

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Posted by Patsam - 3 years ago

Hi Lily P

Thanks for the offer - I'd certainly like to have the details but I'm a total novice with this "discussion" system, so don't know how to send you a direct reply as I can't locate your personal email - could you send direct to me on tayana5500@gmail.com?

Many thanks

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Posted by Jo Taylor-790528 - 3 years ago

No, you don't need an accountant - you just enter one amount. The tax is a fixed percentage, so an accountant can't save you anything.

If you want to look at the form for last year (2015 for 2014 income) you can download it here:

http://www.impots.gouv.fr/portal/deploiement/p1/fichedescriptiveformulaire_9710/fichedescriptiveformulaire_9710.pdf

 

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Posted by LilyP - 3 years ago

We have used a lady through the Gite Doctor who does our French Tax Return for us and charges us €75 - she is a qualified accountant - we do all the contact via e-mails and I really cannot praise her enough - this will be the 4th return she's done for us. If you e-mail me personally I will pass her details on. Well worth the money.

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Posted by Patsam - 3 years ago

Many thanks for this Jo.

Do you fill in this form personally, or is it necessary to involve a French Accountant?

Does anyone know an English speaking French accountant who I could discuss this through with - I'm wondering whether all the red tape will make this viable!

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Posted by Jo Taylor-790528 - 3 years ago

You need form F2042C.

More info here:

http://www.french-property.com/guides/france/working-in-france/letting-property/taxation/

And here:

http://www.french-property.com/guides/france/working-in-france/letting-property/taxation/furnished-accomodation/

Contact details for the Service des Impôts des Particuliers Non-Résidents:

http://vosdroits.service-public.fr/particuliers/R122.xhtml

The "abattement" (fixed allowance before tax) should be 71% - it always has been (give or take a few percentage points), but it's possible that nowadays you might be required to register with Gites de France to benefit from this higher rate. Otherwise it will be 50%.
You'll be taxed at 20% on the net amount.

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Posted by Patsam - 3 years ago

Many thanks for the 3 replies - realised I had to declare income (and offset costs) on UK tax return, just didn't think about involvement with French tax authorities.

Can anyone point me in the direction of the form required? would it be necessary to use French accountant or has anyone experience of completing the declaration personally?

Thanks

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Posted by LilyP - 3 years ago

As people have said the income is taxed in France at 20% and due to the reciprocal tax agreement between UK And France you don't pay twice (It must however be declared on your UK tax return).

I don't think anyone has mentioned that you can offset up to 50% of your income  against costs. If they have - my apologies.

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Posted by countrydweller - 3 years ago

The rule relating to anything involving buildings is that the taxation is paid in the country where the building is situated so as Reveuse says you will have to declare it in France then as a UK reident you then declare it to HMRC on the Foreign Income pages of your tax return showing how much tax you paid in France.You of course have to register it and also comply with safety rules such as a fire blanket in the kitchen plus insurance when one of your guests slips over whilst intoxicated or feral children decide to draw all over the newly decorated walls.Then you have to consider marketing- will you have your own website or use an an agency such as chez nous or owners direct etc.Lastly of course who is going to change the bed linen towels clean and cut the grass Other than that it s all stright forward really(been there done that etc....)

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Posted by Reveuse-918439 - 3 years ago

Yes, if you're a uk taxpayer you pay tax in France and declare thé income to hmrc as already taxed. I think it's 20% with an allowance for expenses.

All tourist rentals have to be registered at the mairie, they are strict on this and you can be fined for not doing.

Earning money tax free in France, now that is optimism.