Charles Hamer's Role In the French Lettings Process

CHARLES HAMER'S ROLE IN THE FRENCH LETTINGS PROCESS

INTRODUCTION

The French property owner should be aware that any letting income generated by the French property, whether owned by a resident in France, the UK or elsewhere, no matter where it is paid or received, is always, first and foremost, taxable in France.

For an individual who is a UK tax resident and domiciled, the same income is also taxable in the UK and must be declared via the usual self-assessment route; so requiring registration for self-assessment if this is not yet the case. The tax component of any French levy on profits can be claimed as a credit against corresponding income tax assessed in the UK on that same income.

It therefore pays to try to make the tax on profits in France lower than that payable in the UK but not at the cost of French tax being higher than in the UK in later years.

Post Brexit, however, in certain circumstances, the French social levies CSG and CRDS, amounting to a 9.7% charge on profits, are payable. These are not allowable as a tax credit against UK tax or as a deduction in calculating UK profits. In such cases an incentive now exists to minimize French taxable profits in any event.

OUR SERVICES

The purpose of our service is to give value for money and provide you with both peace of mind that your tax obligations are being met, as well as the confidence to go ahead and generate income from the property to help meet the cost of its upkeep.

Our role in acting as your agents in the administration of your tax obligations arising from the French property rental income is as follows:

• Recommending the most appropriate tax regime in France according to the level of income you expect to generate and the likelihood of registering a profit or a loss.

• For furnished property rentals: the registration of the letting activity with the French tax authorities.

• For furnished property rentals: the creation of your business and personal online French tax portals through which all French tax office correspondence must pass.

• The preparation, completion and submission of the French tax returns.

• The verification of resulting French tax assessments.

• The preparation and presentation of an income and expenditure model for the UK and the completion of the UK SA106 (supplementary UK declaration relating to foreign income); 

• We also claim any tax credits in France to be offset against tax due in the UK on the same income.

• For furnished rentals: meeting your obligation to describe the property and the activity for the local tax office responsible for assessing business rates (CFE / Cotisation Foncière des Entreprises);

•  Claiming CFE relief – either through CFE exemption or limitation – when the business qualifies.

• Being a point of reference and liaison for any administrative issues you may come across when managing your property.

FREE LETTINGS INFORMATION PACK

To receive a free information pack regarding letting your French property, please forward your name by email , quoting WEB1:

 tax@charleshamer.co.uk
Telephone : +44 (0)1844 218956

Or complete the Contact Us form to be found on this page.

OUR OTHER FRENCH TAX SERVICES

We are also able to provide services and advice on a range of other French tax issues which include:

• Annual French Tax Returns for the French tax resident
• French & UK Capital Gains Tax
• Wealth Tax Administration

Please refer to the individual web pages for more information on these services or contact our offices.