Declaring UK rebtal income on French tax return
Discussion
Hello everyone
Through inheritance we have just bought a small flat in Glasgow. We have regsitered with the UK tax office to be paid gross and to submit a UK tax return as is the requirement.
I spoke to an accountant previously and they said to declare the nett income on the French tax return the same as the nett income on the UK tax return.
As one is April to March and the other January to December does this work a year in arrears or pro rata?
Thanks
Terry
Through inheritance we have just bought a small flat in Glasgow. We have regsitered with the UK tax office to be paid gross and to submit a UK tax return as is the requirement.
I spoke to an accountant previously and they said to declare the nett income on the French tax return the same as the nett income on the UK tax return.
As one is April to March and the other January to December does this work a year in arrears or pro rata?
Thanks
Terry
If I understand your question correctly, then, as with other UK investments you should declare the rental income of the previous Jan-December on your French declaration.
The PITA is that if you receive the rent monthly, you should declare the euro value on the day you receive it. Like all accounting, if you pop the rent and exchange rate into a spread sheet as you go along it makes life a lot simpler...... but if you need day by day historic rates here's a link: http://www.exchangerates.org.uk/GBP-EUR-exchange-r...
Steve
The PITA is that if you receive the rent monthly, you should declare the euro value on the day you receive it. Like all accounting, if you pop the rent and exchange rate into a spread sheet as you go along it makes life a lot simpler...... but if you need day by day historic rates here's a link: http://www.exchangerates.org.uk/GBP-EUR-exchange-r...
Steve
Steve
The French accountant said that you should declare the nett income , i.e. after any offsetable costs as far as the UK tax return is concerned.
I suppose that just becomes a monthly offset at the rate at that time?
Its a little different to a normal investment as the UK tax has to be paid first
Thanks
Terry
The French accountant said that you should declare the nett income , i.e. after any offsetable costs as far as the UK tax return is concerned.
I suppose that just becomes a monthly offset at the rate at that time?
Its a little different to a normal investment as the UK tax has to be paid first
Thanks
Terry
Edited by Terryg4 on Thursday 16th March 08:55
[quote=Terryg4]Steve
The French accountant said that you should declare the nett income , i.e. after any offsetable costs as far as the UK tax return is concerned.
I suppose that just becomes a monthly offset at the rate at that time?
quote]
Yes I think so.
I see the problem regarding year end vs monthly figures, but I think that you'll just need to get your UK account prepared smartly and get the same income figures into your French declaration. In my calculation for my French declaration I will show 1/12 of my annual nett income on each day that I received the gross income.
We are going down the same route as you and a friend advised me to buy a copy of http://www.taxcafe.co.uk/property-tax-guide.html I confess that I haven't read it yet but I understand it to have good advice in preparing the UK accounts. I particularly like "visits to inspect the property" being a chargeable cost.....
Steve
The French accountant said that you should declare the nett income , i.e. after any offsetable costs as far as the UK tax return is concerned.
I suppose that just becomes a monthly offset at the rate at that time?
quote]
Yes I think so.
I see the problem regarding year end vs monthly figures, but I think that you'll just need to get your UK account prepared smartly and get the same income figures into your French declaration. In my calculation for my French declaration I will show 1/12 of my annual nett income on each day that I received the gross income.
We are going down the same route as you and a friend advised me to buy a copy of http://www.taxcafe.co.uk/property-tax-guide.html I confess that I haven't read it yet but I understand it to have good advice in preparing the UK accounts. I particularly like "visits to inspect the property" being a chargeable cost.....
Steve
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