Hello,
I rent a house in the UK but make so little money on it - due to high interest rates- that I do not get taxed on my income in the UK as it is under my personal allowance. I declare the amount on my French tax forms but wanted to know if I should get a ‘credit d’impot gal a l’impot francais’ or not as I have had conflicting advice from advisors at the tax office!
Thanks in advance for any help,
H
This is how the taxation thingy between France and UK was explained to me by a French Govt Tax person…
You declare every sum received worldwide to us in France… and we (France) decide how much Tax (if any) we would charge you… then we look at how much Tax you’ve paid in UK… and if the UK sum is lower than our French sum… we (France) charge you the difference…
On the other hand… when we (France) check things… if we note that you have paid more Tax in UK than we (France) would charge you… that’s just “tough luck” 'cos we don’t give you the difference… that’s between you and UK 
You get an equivalent personal tax allowance in France too. For one person it is €11,294 this year.
Then you pay 11% up to €28,800.
Often what happens is that this extra UK income tips you over into a higher tax paying band, so although you don’t pay tax on this you may end up paying more tax and social charges on the rest of your income. If the total including UK income goes over €28,800.
I found this information on French-property.com which suggests that I should get a credit equal to the French tax amount. Have other people declared their taxes like this?
However, you will also need to declare the income to the French tax authorities, which will be added to your other income to determine the rate that applies to your total income. You will receive a tax credit equivalent to the tax you would have paid in France on the income. This tax credit may be higher or lower than the actual tax you pay in your home country; it will depend on your circumstances. The fact that you may have paid no income tax in your home country on the income (as perhaps below personal allowance) is irrelevant.
Hi, yes the above is correct. You mentioned you have high finance costs - you can deduct these directly from the rental income in the France declaration.