![]() |
|
3. Liability to French Income Tax
3.4. What Income is Taxable in France?
3.4.1. 'Worldwide Income'If you become resident in France you need to declare your worldwide income from all sources.
If you would like to receive regular information on French taxes, buying French property and living in France, then why not register to receive free of charge each fortnight our popular Newsletter. 3.4.2. UK Pension IncomeIf you are resident in France and in receipt of a State retirement pension, private sector pension, or annuity from the UK, it is taxable in France.
A 'government service pension' is paid to former members of HM Forces, ex Civil Service and Foreign and Commonwealth Office employees, as well as ex local authority employees. National Health service pensions are not considered to be a 'government service pension'. You will not be liable for income tax in France on this income, although your net government service pension will be taken into account for the purposes of calculating the tax rate on any French earned income or foreign income taxable in France. You will receive your normal UK personal allowance against this government service pension; if you are also in receipt of a State retirement pension from the UK taxed in France, then you will also benefit from the allowances granted in France on this pension to someone who is retired. In short, those in receipt of a government service pension obtain the allowances from both the UK and France! Those in receipt of pension income should read our consideration of your potential liability to the social charges in France, as your liability to this tax will depend on your pensionable status. Government service pensions taxed in the UK are not liable to the social charges. Similarly, those in receipt of a State retirement penson are not liable for the social charges.
Top Tip!
If you relocate to France before the age of retirement, and later become eligible for a lump sum payment on retirement, it is generally not taxable in France, although the rules are a little unclear. You need to discuss your circumstances with your advisors so you can make the best choice.3.4.3. Foreign Rental IncomeIf you become resident, but continue to receive letting income from property remaining in the UK, then this income is ordinarily taxable by the UK authorities, to whom you will need to make a tax declaration.
3.4.4. Foreign Savings IncomeIf you earn foreign savings or investment income, then this is entirely taxable in France, although you will get relief against any taxation paid elsewhere.
Even if you wished to do so, it is not easy to get away with not declaring your foreign savings interest to the French tax authorities. In July 2005 the European Tax Directive came into force, under which Member States agreed to exchange information about bank customers who earn interest in one country but live in another.
If you would like to receive regular information on French taxes, buying French property and living in France, then why not register to receive free of charge each fortnight our popular Newsletter. 3.4.5. French Rental IncomeYou will need to declare all rental income earned in France. The basis of taxation will depend on whether it is furnished or unfurnished rental income. Information and advice and the taxation of rental profits can be found in our comprehensive guide to Taxation of Rental Income in France. 3.4.6. French Business IncomeThe taxation of business income is dealt with elsewhere in our Guides, but if you run a micro business in France you will need to declare the profits with your personal income tax return. If you run a limited company your company tax return is submitted separately from your personal income tax return. You can read more in our Guide to Micro-Entrepreneur Business in France. Next: Your French Income Tax Return Back: Your Fiscal Household in France Couldn't find what you are looking for? Search again now!! The Guides to France are published for general information only. Please visit our Disclaimer for full details. |
Copyright © French-Property.com