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28/04/2009, 17:27 Nell Joined on 14/08/2007 24 Posts 338 Tax Form 2047 - interest on savings - confused ! Year 2 of filing French tax forms.... I am a bit confused about the interest on savings.. as to whether i should be using the Net interest figure or the Gross interest figure Page 2 of the form section B (Autres revenus de valeurs.....) Column 5 is where I put the total of my interest earned (This then transfers to TS on my 2042 form). The heading is "montant net encaisse en euros" This plainly states "NET" and when I went to the tax office last year the man pointed out "Net" and even circled it in pen to make sure I used net figures here. Well to be honest I used net figures for 1 savings account because I knew what the net figure was, but for another one I used the gross figure (This was an ISA that I had no net figure for) as I did not know how to calculate a net figure. This time round I need to ensure I get it right, so can someone tell me whether I should use gross or net? If the answer is net, do I just take 20% of the total as that is what the UK tax man takes?? Help!!!! Also I know there is lots of discussion on the forum about using the exchange rate each month when your pension hits your French bank account, but as I don't transfer my money on a monthly basis, I think I am best using an average annual figure. The last I seem to have read on here is 1.25. Has anyone got any updates on this?? Last year I used 1.3636  as supplied by the French News paper, but when I got to the Nontron tax office, I was asked to go home and recalculate everything using 1.42 Cheers    Report

28/04/2009, 17:35 sweet 17 Joined on 05/08/2006 charente maritime Posts 7,057 Re: Tax Form 2047 - interest on savings - confused ! Now I'm confused as well.  I thought you use the gross figure and claim back the interest from the UK taxman. "You are the pancake queen, young and sweet, only seventeen" By Clair with apologies to ABBA    Report

28/04/2009, 18:08 milkeybar kid Joined on 06/03/2007 Posts 315 Re: Tax Form 2047 - interest on savings - confused ! Not my words, but I saved this Q & A info to file as it sounded important!but I think this is what u are referring to-Tried really hard to get this straight from previous postings and the ever helpful FAQ's, but can someone explain again the correct way to enter UK savings interest? The FAQs say enter Gross amount in column 5 of. 2 - REVENUS DES VALEURS MOBILIÈRES ÉTRANGÈRES ET REVENUS ASSIMILÉS (2047) but this column is headed NET. Do you make any adjustmnets to this figure before carrying it over to the TS box on the 2042? NO. The figure that goes onto the 2042 is the gross interest. Remember the 2047 is just a calculation sheet and is not just for the English to use, some income from some countries is subject to calculations and % adjustments and that is what the net figure means, not net of tax.    Report

28/04/2009, 19:40 allanb Joined on 04/09/2006 Posts 980 Re: Tax Form 2047 - interest on savings - confused ! Sweet 17 is right; if you are resident in France, UK interest is taxable in France, and if UK tax was deducted from it you will have to reclaim the tax from the UK - France won't give you any credit for it. "Net" doesn't necessarily mean "net of tax". Referring to income paid into a French account, I think it means the euro amount net of bank charges, exchange commission, etc.    Report

29/04/2009, 8:30 cooperlola Joined on 05/05/2006 72 - Sarthe - home of les 24 heures du Mans Posts 8,270 Re: Tax Form 2047 - interest on savings - confused ! imo, MBK and AllanB have it right.  It does not mean net of tax.  S/D's instructions in the FAQs are correct - as you would expect! Healthcare Issues Site "I couldn't sleep very well last night. Some noisy b*ggers going around in automobiles kept me awake." Ken Miles    Report

29/04/2009, 16:24 Araucaria Joined on 02/02/2009 Auvergne Posts 188 Re: Tax Form 2047 - interest on savings - confused ! For what it's worth, the ISA interest mentioned by the Nell will be same gross as net, since ISAs are tax free (if you stick to the rules). The banks don't deduct tax at source from them. And as far as I remember, the discussion on the forum about the exchange rate to use for foreign (=UK) income didn't suggest using the rate for the day when the income hits your French bank account. Instead you use the rate on the day you receive it in your UK bank, even if you never bring it to France at all. Citroen H - State of the Ark Motoring http://denchilds.blogspot.com/    Report

29/04/2009, 16:33 cooperlola Joined on 05/05/2006 72 - Sarthe - home of les 24 heures du Mans Posts 8,270 Re: Tax Form 2047 - interest on savings - confused ! Araucaria, as I read Nell's post that was indeed true for the second amount.  However, I believe she also declared a seperate amount (non isa) net of tax, which it's important for her to know was not correct.  But I may have read this wrongly. As to the exchange rate question then yes, I agree but I hope that discussion stays on the original thread and doesn't spill over on to this or poor Nell really will be confused. Healthcare Issues Site "I couldn't sleep very well last night. Some noisy b*ggers going around in automobiles kept me awake." Ken Miles    Report

29/04/2009, 17:18 Nell Joined on 14/08/2007 24 Posts 338 Re: Tax Form 2047 - interest on savings - confused ! I've got it now - Gross for everything, which actually makes sense to me. It was the tax guy in Nontron, who changed one of the figures to net, when I took my tax forms in to be checked over..... I was really puzzled at the time, but as the tax implication was going down not up, I didn't argue too much . As for the uk/euro rate, If possible I would rather use an average annual exchange rate as I get one pension paid at the end of each month, but O/H has payments from three different sources on three different days of the month.... Work that out and it would be trying to calculate at least 52 lots of payment, plus any interest from bank accounts etc.... The very thought makes my head hurt Thanks for all replies    Report

07/06/2009, 12:01 audio Joined on 04/05/2008 Posts 48 Re: Tax Form 2047 - interest on savings - confused ! From this very useful website: http://www.annett-consultancy.com/article_filling_in_your_French_tax_form.html#UKinterest For declaring interest etc, they quote: ‘These are declared in total, jointly, for both spouses, and it is the net figure of interest actually received, not the gross pre-tax income figure that is declared. Add together all of the net (after the deduction of tax, the amount actually received) and interest for both spouses, from all sources, by country of origin.’ To my thoughts, this is an advantage. I have a small amount of cash in a UK savings account and any interest earned (not much these days) I declare as outlined above, then quite legally I think, the tax paid on this interest in the UK can be claimed back on UK Gov. form R43 if this sum is below your personal allowance.    Report

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