Tax from renting French Gite

[puggit]

Mrs Puggit and myself are very seriously considering buying a property abroad to initially run as a holiday-home and then probably move in to (depending on how quickly Bliar pushes us!).

Just wondering if anyone knows how the tax system would work on earnings from holiday rentals? Can I hope that Brown won't get his dirty mitts on any of it?

Thanks!

[Eric Mc]

As long as you are a resident of the UK, you are liable to pay Income Tax on all your income, no matter what part of the world your income originates in.

Letting of a holiday home is taxed under slightly different rules to ordinary residential or commercial lets. For instance ,you can claim some more reliefs and allowances on a holiday letting.

If you suffer Freanch tax deducted at source on this property, you may escape additional UK tax under the UK/France Double Taxation Agreements.

You could also be subject to UK Capital Gains Tax when the property is subsequently sold.


>> Edited by Eric Mc on Saturday 12th February 15:13