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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4939
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hi we are thinking of buying a gite business in france, we

Resolved Question:

Hi we are thinking of buying a gite business in france, we have houses in the uk that we rent out for income how will the tax system affect us do we pay tax twice.
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise if you are
- UK nationals and
- UK resident for tax purposes and will remain so after purchase of gites business in France

Many thanks
Customer: replied 3 years ago.

We are uk residents born in the uk if thats what you mean

Customer: replied 3 years ago.

i dont know what you mean we want to live in france and run a gite business and keep our rental propertys in the uk who will we pay tax to on the uk rental propertys

Customer: replied 3 years ago.
Relist: Incomplete answer.
Expert:  taxadvisor.uk replied 3 years ago.

Janice, thank you for your prompt reply.

You relisted the question as Incomplete Answer before I had even provided an answer.


As UK residents, your worldwide income is chargeable to UK income tax.
Having said that, you can claim foreign tax credit relief against foreign tax paid in France on profits from gites business. Profit from this business would be chargeable to French income tax even if you are non resident in France for local taxatiion purposes.

So, if you were to leave the UK and settle in France, profits from UK property income would be chargeable to UK income tax. As UK national you would be entitled to your UK personal allowance against this rental income before tax is calculated.

I am not an expert on French taxation but I presume they have similar system to the UK. If rental income from the Uk were to be taxed in France then you would be able to claim foreign tax credit relief in France against it under double taxation agreement with France.

Furthermore, you may wish to read information on "The Non-resident Landlord Scheme” here

http://www.hmrc.gov.uk/international/nr-landlords.htm

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4939
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

ok so what you need to tell me is can you claim tax credit relief under double taxation in France as you are only presuming its the same as the uk laws.


 


We need to know for definite as we would be living in France with a gite business in France and EARNING from rental properties in the UK?

Expert:  taxadvisor.uk replied 3 years ago.
Janice, thank you for your reply.

You will be able to make a claim for UK tax relief or exemption by filling claim forms for non-UK residents.

More information on this and a link for claim forms can be found here.

http://www.hmrc.gov.uk/international/dta-claim.htm#1

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.


Expert:  taxadvisor.uk replied 3 years ago.

janice, also look at this link

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=mqpUQnAtx50&formId=975

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.

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