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Finally, if your French healthcare cover is courtesy of an E-form, then you are exempt from social charges (contributions sociales) on your UK company and old age pensions. So, on the 2047 section VIII REVENUS DE SOURCE ÉTRANGÈRE SOUMIS EN FRANCE À L’IMPÔT SUR LE REVENU ET IMPOSABLES À LA CONTRIBUTION POUR LE REMBOURSEMENT DE LA DETTE SOCIALE (C.R.D.S.) - just write in 'Titulaire de formulaire E121 (or whichever E-form you have), donc je ne suis pas a la charge de l'assurance maladie' and leave the amount box blank.
My wife turned big 60 during the course of the 2007 tax year and she applied for, received and registered her E121 with the CPAM with me as her dependant. We then received a letter from the URSSAF indicating that the « radiation » of our « compte au regime general de securite social sous condition de residence (cmu) » was with effect from 30/06/07. From that date our three monthly payments ceased. I intend to include a copy of this letter with our tax return. I am not sure on what part of our income CRDS is charged but whilst our pensions are regular throughout the year other sources of income like building society interest, annual, premium bond prizes, sadly small, are not. My question what can I do to make it more likely that the tax office takes the appropriate action in calculating the correct CRDS as monies entered on the form are not dated. My experience in the past has been that if it is too difficult they just ignore extra information and charge what they think. Had this last year as they totally ignored tax paid on my teachers pension in the UK, got it back in the end but only after a bit of a fight and help from a site member!
The calculation of tax and social charges is determined upon which boxes you put the relevent information in.
As explained in the FAQ, foreign earnings and pensions taxable in France (ie, your non-teaching pensions) are subject to CRDS except where you hold an E-form (or have private insurance). Assuming you were registered for CMU prior to 30/06/2007, then you enter the sum of your non teaching pensions for the whole year in boxes AS/BS (that's for the tax bit), then split the total into that received prior to 30/06/2007 and that received after. The pre June amount is additionally entered in box TL (that generates the CRDS charge due for that slice of income) and the rest goes nowhere because there's no charge applicable.
There is no need to include a copy of your URSSAF letter with your declaration. As stated previously, just mention the fact that you hold an E121 on your 2047.
And
What about pensions based on an annuity - is this going to be a problem?
A No - they just have to be entered differently.. Enter the gross amounts on form 2047 section I. RENTES VIAGERS DE TITRE ONEREUX then transfer them across to the 2042 and into box AW, BW, CW or DW dependent on your age when the annuities were taken out. The social charges are calculated directly from this, so no need for any additional entry on forms 2047 or 2042.
I have heard that the tax people may want evidence that contributions were only made by us and no one else. What form would this evidence take and should I include it with the tax forms as a matter of course. I used to lump these in with our other pensions in the past and thanks to info on this and other sites have only just found out, again thanks to a site member, that I should have declared them in RENTES VIAGERS DE TITRE ONEREUX with, I hope, some tax advantage.
No need to include annuity information with your tax declaration, just keep all the backup stuff. Now that you've got it right, you'll find you get better tax relief on these.
Finally form 2042
I have used box TI for my net teachers pension and box TK for the sum of a firms pension before I went into teaching and my wifes firms pension plus her state pension. I have put details of these on form 2047.What about box TL (2042), should anything go in there.
Box TI is correct for your teacher's pension - income not taxable in France, but taken into account for calculating the marginal rate on your taxable income. For your other pensions, Box TK is incorrect - it's for income taxable abroad which qualifies for a French tax credit equal to the amount of foreign tax paid. As explained above (and in the FAQ), your other pensions go elsewhere.
I must say that I find the French tax thing most confusing and my only consolation is that even if I get it wrong I should not be out of pocket as much as if I paid an accountant to do it for me and I say this from personal experience!.......................................J
If you follow the advice set out in the FAQ, you'll find your tax situation is very straightforward and quite simple to declare here.
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