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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13869
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Hello, I hold a French passport but live in London. The

Resolved Question:

Hello,

I hold a French passport but live in London.
The Revenue and Customs now wants to know what property I own in France.
Do I have the right to refuse and if what would be the consequences?
Thank you
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi

Thanks for your question

I am Sam and I am one of the UK tax experts on Just Answer.

To advise further

1)How long have you lived here in the UK
2) Do you own property abroad
3) Does this property abroad generate income (from rents)
4) Does any income from abroad come into or get used in the UK - if so please advise what this income arises from
5) What does the penalty notice of £1200 relate to - non filing of self assessment tax returns or something else

I can then advise what you are legally obliged to do, and whether there is scope for you to declare this income under the remittance basis, and whether this will cause any tax charges.

Thanks

Sam
Customer: replied 3 years ago.


Hello,


 


I have lived in the UK since 1997.


I do own properties abroad and they generate an income which is paid into a French bank account. None of my income get used in the Uk apart from the fact that I use my French card to withdraw money from time to time.


The penalty notices are for an overdue Self Assessment tax payment, due to the fact that I do not see with I should declare my French income in this country or pay taxes when I am already taxed in France.


Thank you.


Sophie Giraud-Blagrove

Expert:  Sam replied 3 years ago.
Hi Sophie

Thanks for your response

Even by using your French card to withdraw money from time to time, is treated as income being remitted into the UK 9which is why I asked whether you spent any of the money in the UK)

And although you may well pay tax in France on this income, as a UK resident you are duty bound to either
1) Declare the income to HMRC (UK tax authorities) along with credit for the French tax suffered or
2) Be taxed under the remittance basis - which you can only do if you do not use any of this money in the UK - which does not appear to be the case.
Even if this was just the odd time - then as you have lived here since 1997 you would incur a remittance basis charge - as you have been in the UK for more than 11 out of the last 14 years (a charge of £50,000 a year)plus the loss of UK personal allowances if the income is more than £2000) and I imagine it is more than this.

I am afraid you should arrange to complete the outstanding tax returns to declare this French rental income (less expenses) and also make a claim under the double taxation agreement for the French tax suffered. which will be offset against any UK tax position arising.

Let me know if you wish any clarification on anything or have any follow up questions

I have added a link here re the remittance basis of tax - and further information on how this works

http://www.hmrc.gov.uk/international/remittance.htm


Thanks

Sam
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