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Charged social charges on UK rental income

Charged social charges on UK rental income

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Old Aug 26th 2019, 5:32 am
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Default Charged social charges on UK rental income

I’ve just got back from holiday to find my avis d’imposition. The local office has charged me social charges on the rent I received last year from a small house in the UK.
From what I can gather on the internet, UK rental income is not liable to either tax or social charges in France.
As regards social charges, however, it does seem to be something of a grey area, with different tax offices taking differing views on the subject.
I was wondering whether anybody else is in a similar situation and, if you’ve challenged the decision, how did you word your letter to the tax office?
Many thanks in advance.
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Old Aug 26th 2019, 12:00 pm
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Default Re: Charged social charges on UK rental income

Same thing happened to us last year so I contacted tax office (quoting article 6 of double taxation treaty) via email and eventually received a 'degrevement'. No argument, their mistake, but no apology
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Old Aug 26th 2019, 2:04 pm
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Default Re: Charged social charges on UK rental income

Many thanks Philnval.
I went to the tax office this morning and indeed they acknowledged it was a mistake. No apology but I’ve been here long enough not to expect one.
So all sorted now. They were very pleasant.
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Old Nov 16th 2019, 9:15 am
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Default Re: Charged social charges on UK rental income

Originally Posted by Helen1964
Many thanks Philnval.
I went to the tax office this morning and indeed they acknowledged it was a mistake. No apology but I’ve been here long enough not to expect one.
So all sorted now. They were very pleasant.
Coming in a bit late on this ...

I went to the tax office yesterday ... waited 2,5 hours for my turn and then was sent to another office upstairs (I did ask when arriving but the bloke said I had to wait my turn, very unhelpful).
Anyway, when I finaly spoke to someone ''In the know'' he thought I did have to pay it !
I quoted art 6 and said other people in my situation are not charged that.
He reckons that, since I am in the ''Securite Social system'' (carte vital etc.) I do have to pay it however, he took copies fraom my papers and will get back to me, probably within 2 weeks .

To be continued .....

1 question though : how many years can one claim back ?

Quote impots
Le délai expire généralement au 31 décembre de la deuxième année qui suit celle de la mise en recouvrement de l'impôt, indiquée sur l'avis d'imposition.
Exemple : ce délai s'achève le 31 décembre 2019 pour l'impôt sur le revenu 2016 mis en recouvrement en 2017.


I think this means the last 3 avis d'impot included this year ? Thanks !
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Old Nov 16th 2019, 3:32 pm
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Default Re: Charged social charges on UK rental income

We finally received our avis d'imposition with nothing to pay on our uk rental income as expected. It was late because of two mistakes I made, one after the other, and had to redo parts of the form. The last submission I added a note explaining that I understood that (from this very thread) we would not have to pay social charges on UK rental income and it obviously worked.
One thing that surprised me a little was that I thought we had to pay tax on UK bank interest. I don't know where I got this from, but at my second meeting with a tax inspector she crossed out where I had noted the amounts and pencilled in 5euro in a box as a nominal sum.
Not wishing to hijack this thread exactly I also asked when I first went there how to register for taxe fonciere and taxe d'habitation. I was told that once I was in the tax system they would contact me. They haven't. I assume they will at their leisure.
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Old Nov 17th 2019, 8:55 am
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Default Re: Charged social charges on UK rental income

UK bank interest is always taxed in France if you are French tax resident according to the Anglo French tax agreement
Taxe fonciere and taxe d'habitation are calculated by the tax office Have you registered online
Normally these tax demands come out in November If you have not had yours soon go back to the tax office
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Old Nov 18th 2019, 7:15 am
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Default Re: Charged social charges on UK rental income

Can I get something straight on taxe fonciere and taxe d'habitation? We officially moved to France in November 2018 and so our avis d'impot is for two months until the end of that year. We refunded the balance of the taxe fonciere to the seller and I believe the house was empty for that year before we bought it. Am I right in thinking the taxe fonciere and taxe d'habitation due now are for 2018? If so, do I still pay a two month proportion of the yearly taxe d'habitiation bill? If the taxes due now are for 2019 I'll go to the tax office and get them to sort it out.
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Old Nov 18th 2019, 10:55 am
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Default Re: Charged social charges on UK rental income

Taxe d'habitation and fonciere are payable by people who live in the property (for TDH) and who own the property (TDF) on the 1 Jan of each year If this is the first time you are taxable and have not got your demand you need to get to the tax office ASAP What can happen is that the tax people take your address off the acte finale when you bought your house and send the demands to your previous home and even if you update your address it can sometimes not be done by a fonctionnaire Go to the tax office with ID and proof of address and if it is your main residence make sure they are not charging you second home rates
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Old Nov 18th 2019, 12:47 pm
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Default Re: Charged social charges on UK rental income

Originally Posted by Alianco
Can I get something straight on taxe fonciere and taxe d'habitation? We officially moved to France in November 2018 and so our avis d'impot is for two months until the end of that year. We refunded the balance of the taxe fonciere to the seller and I believe the house was empty for that year before we bought it. Am I right in thinking the taxe fonciere and taxe d'habitation due now are for 2018? If so, do I still pay a two month proportion of the yearly taxe d'habitiation bill? If the taxes due now are for 2019 I'll go to the tax office and get them to sort it out.
No, the property taxes due now are for 2019. You pay in arrears in the sense that you pay at the end of the year not at the start, but not two years in arrears!! So you are due to pay both property taxes in full for 2019. Possibly what is confusing you is that the taxe d'habitation is assessed on the previous year's income, but the bill is for the current calendar year.
As LVC says, you need to go to the tax office and find out what you owe because it sounds as if your bills went to the wrong address and you have already missed the tf deadline. Late payment fines are applied automatically but they usually take them off with no fuss if you explain that you never got the bill.
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Old Nov 18th 2019, 2:47 pm
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Default Re: Charged social charges on UK rental income

I went to the tax office this afternoon and got an avis of 0 euro for taxe d'habitation for 2019 and a form to sign and hand back in with my acte de vente for them to bill me. Hopefully I won't be fined for late payment since I think it's their mistake. I saw a poster in the offices that I think said that taxe d'habitation is payable for couples earning over 43,000 euro so we are exempt. Some good news at least.
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Old Nov 18th 2019, 4:23 pm
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Default Re: Charged social charges on UK rental income

No TDH to pay- that is une pression pour tous
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Old Nov 18th 2019, 7:23 pm
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Default Re: Charged social charges on UK rental income

Ou peut-etre plus.
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Old Dec 18th 2019, 10:35 am
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Default Re: Charged social charges on UK rental income

OK, my saga continues ...

Went to see the tax office yesterday (yes, I did get stuck in demonstrations).
His replies were
1/ Have to prove I did pay UK taxes
2/ I am in French Social Sec. system so have to pay
3/ Art. 24 of treaty which he read out to me at high speed so no way to understand.
4/ Income tax deducted on this property should not have been deducted without prove I pay UK taxes
And at the end of this discussion
5/ All of the above.

What am I doing wrong ?
How can I proceed ?
How did you who had the same problem get a possitive reply ?
Where should I go next since my local tax office does not want to co operate ?
Do I need a professional to help me ?

And btw I did not get a reply yet from my message in my private box on the gouv fr side.

Please, any info very much appreciated ! Thanks
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Old Dec 18th 2019, 11:29 am
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Default Re: Charged social charges on UK rental income

I can't offer any specific help, but, the France-UK tax convention is easily found on google so you can read Article 24 in English at your leisure should you feel moved to so do.
Also, failing all else you could approach SOLVIT, the EU organisation that gives free email advice to EU citizens. They do reply, they have EU regs at their fingertips and often they can help.

I haven't re-read this entire thread so I may be repeating or contradicting what's been said earlier, but my understanding is that in theory you are liable to pay social charges, inasmuch as you're not exempt, but in practice social charges can be cancelled out along with income tax when the DTA is applied. Charging you and then cancelling it out, is not the same as not charging you in the first place, if you see what I mean - your argument shouldn't be you shouldn't have been charged it, it should be that having charged in accordance with French rules they should then be refunding it in according with the DTA. That being the case i doesn't seem unreasonable for them to want something to prove that HMRC has in fact had first dibs at taxing it before they will apply the DTA - have you already provided some kind of justificatif?
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Old Dec 18th 2019, 4:18 pm
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Default Re: Charged social charges on UK rental income

It is quite clear from the Anglo French tax treaty that income from rentals is taxed in the state where the building is situated but you obviously need to declare it in France and you should receive a tax credit It is also clear that no social charges are to be applied on this income so whoever you spoke to has got it wrong You obviously need to go back or write a letter You may need to get professional advice There was a letter circulating a while back from the office of the head of the fisc making it clear that the situation as I have described was correct and that other interpretations are incorrect If you have no joy speaking to a supervisor at the tax office your next stop is the conciliateur
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