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29/05/2009, 16:27 Llantony Joined on 23/08/2004 South West France Posts 356 Re: Tax on UK rental Many thanks.  I've just phoned Intasure (having previously tried 3 companies who won't insure us) and they are emailing a quote.  They don't seem to mind whether someone is living in the house or not and it doesn't seem very expensive.  I hope they are helpful should we ever need to claim..    Report

30/05/2009, 12:07 Un autre Gallois Joined on 22/02/2009 Aude Posts 17 Re: Tax on UK rental Not wishing to add to the confusion, but have any of the forum members explored yet the use of personal UK tax allowances to set against the rental income? Particularly the joint ownership of the rental property where one of the joint owners has utilised all the personal allowances against the taxation of a UK govt pension, but the other owner has enough personal allowance to reduce tax liability on the total rental income to nil. If only half the rental income from the jointly owned property can be used for this purpose what other options are worth pursuing eg entering into a lease at a small sum from the one owner who has used all the personal allowance to the other joint owner so that the whole of the rental income is properly receivable by the other owner and absorbed by the personal allowance? p.s. Previously a member of French News forum & recently "discovered" this forum!    Report

30/05/2009, 13:09 Llantony Joined on 23/08/2004 South West France Posts 356 Re: Tax on UK rental Good point!  My state pension is tiny so even if all the rent was declared as my income, I would still be under the personal allowance.  Somehow I suspect as we are joint owners of the house, I can only claim half of the rent as income.  In fact I'm not sure whether personal allowances operate in the UK for those living in France - presumably we get a joint personal allowance there?    Report

30/05/2009, 13:10 Gluestick Joined on 22/03/2006 UK and Nord Pas de Calais Posts 2,893 Re: Tax on UK rental Once a person is Fiscally Resident in another jurisdiction, their Personal Allowances evaporate.   "Yes, but that apart, Mrs Lincoln, did you enjoy the play?" Gluestick    Report

30/05/2009, 13:41 Un autre Gallois Joined on 22/02/2009 Aude Posts 17 Re: Tax on UK rental  Gluestick wrote: Once a person is Fiscally Resident in another jurisdiction, their Personal Allowances evaporate. I beg to differ! My local govt pension is taxed by law in the UK & my personal allowance is reflected in my tax code. Taxes paid by law in the UK do have the benefit of any UK personal allowances. Mrs autre Gallois has her tax deducted from UK interest refunded because her UK personal allowance is greater than the tax deducted. UK Personal allowances can be set against UK taxes due & this principle applies to absentee landlord rentals taxed by law in the UK.    Report

30/05/2009, 14:17 Maricopa Joined on 01/10/2007 Minervois, Hérault Posts 782 Re: Tax on UK rental  Un autre Gallois wrote:  Gluestick wrote: Once a person is Fiscally Resident in another jurisdiction, their Personal Allowances evaporate. I beg to differ! My local govt pension is taxed by law in the UK & my personal allowance is reflected in my tax code. Taxes paid by law in the UK do have the benefit of any UK personal allowances. Mrs autre Gallois has her tax deducted from UK interest refunded because her UK personal allowance is greater than the tax deducted. UK Personal allowances can be set against UK taxes due & this principle applies to absentee landlord rentals taxed by law in the UK. Absolutely right UAG.  Unfortunately "spare" personal allowance can't be transfered in the case of rental income, the split has to reflect the true state of ownership (ie in most cases 50/50). Maricopa Never assume anything, it only makes an assofuandme    Report

30/05/2009, 14:38 Un autre Gallois Joined on 22/02/2009 Aude Posts 17 Re: Tax on UK rental Thanks, Maricopa; if you go back to my first post I also asked if one joint owner could legitimately lease his/her half ownership to the other who could use their hitherto unused personal allowance to "mop up" totally the taxable rent income.    Report

30/05/2009, 14:44 Gluestick Joined on 22/03/2006 UK and Nord Pas de Calais Posts 2,893 Re: Tax on UK rental http://www.hmrc.gov.uk/budget2009/bn54.pdf They plan to extend this apparently: to all non-residents. Picked up in a recent Tax Bulletin. It is of course Tax Neutral, if one has an income base in UK and is fiscally resident in a state with a good Dual Taxation Treaty in force, since if, for example, one pays UK tax: one then receives a credit in France. PA used to reduce a UK tax charge means this effectively increase the French liability: since tax due and paid produces a Tax Credit: yet the French Impôt calculate tax arising on whole income; and then deduct tax paid before seeking the balance. Swings and roundabouts.   "Yes, but that apart, Mrs Lincoln, did you enjoy the play?" Gluestick    Report

30/05/2009, 14:57 Un autre Gallois Joined on 22/02/2009 Aude Posts 17 Re: Tax on UK rental Does para 5 not continue to give the benefit of personal allowances under the double taxation agreement, which would presumably apply to the absent landlords arrangements - rent taxed in the UK, not in France, but counted in the calculation of French marginal rates of taxtion?    Report

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