We would appreciate any advice on taxation regarding the income we receive from our holiday let. we estimate that after costings we receive about £1000 a year net profit. We appreciate any advice on this.Kindest Regards James and penelope
Are you resident in France or the UK?
Hello Bernice, my partner is resident in UK
thank you for your fast response
If the rental property is owned by a uk resident..........https://uk.ambafrance.org/FAQ-Rental-income-from-France You declare the full amount and a reduction - 50% -- is automatic & you pay 20% tax on the rest ! It has to be declared in uk too!
I agree with what Buster says. However, we are in the same position with a Holiday Let, are UK resident and for 2015 & 2016 we paid 20% (income tax) plus 15.5% (social tax) making a total of 35.5% which is almost double what we have paid in previous declarations. The EU says it was illegal to take this from us if we are paying it in another country (which we do) but France got round this. I left a message via our online tax account and they sent me an explanation in the post.
To be perfectly honest I think it's hardly worth it for us now.
Thank You Busterboy