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I am a newbie to the Community and would welcome advice on how to treat my French Leaseback income wrt UK Tax - I mid-way through tackling the 16/17 online self-assessment.
Are we meant to declare the property to HMRC as an 'EEA Furnished Holiday Letting' (https://www.gov.uk/government/publications/furnished-holiday-lettings-hs253-self-assessment-helpsheet/hs253-furnished-holiday-lettings-2017) and is there any benefit in doing so?
If the property is treated as a normal 'buy to let', what expenses are admissable? The purchase fees (eg legal, mortgage)? When I was renting a property in the UK I used to be able to claim mileage and expenses for a property insepction visit every 6-months. It that still possible? As this is for 16/17 I believe the interest on mortgage is still admissable - but I believe not for future years. Can you still claim the 10% depreciation on furniture/fittings - eg the 'furniture pack' we were forced to buy. If most of these are allowed, then in the first FY I probably have a lot more outgoings than income.......but next FY (and onwards) clearly that is not the case. Can the 'expenses' from the first year be rolled on to other FYs to reduce liability?
As I said - newbie so apologies if muppet questions.
Monty
Hi Monty,
Did you ever get to the bottom of this?
I am unsure whether I need to complete anything on the UK Self Assessment for the French Leaseback property as I pay tax in France via Tax Fonciere and there is nowhere I can see that takes that into consideration on the UK forms.
Any help from anyone woulkd be appreciated.
Thanks,
Paul.
Sadly no help at all. Last year I included as 'income from land and property abroad'. This year the rules have changed again and it looks like a HUGE tax bill as most French expenses are not admissable in the UK.
If you live in the UK and have a rental property in France you must declare your rents as income You will find details in the UK Government site. You can do it online
Hi all,
regarding self assessment and closed projects, if the scheme clsoes earlier than the 20years and the buyer is obligated to pay the pro-rota VAT to the French Government because it wasn't sold as an ongoing let, can this VAT payment be considered a deductibel expense for self assessment?
Thanks
Paul
I am just filling in my UK tax return for the income from the French Leaseback property. As per the original question are French Leaseback's treated as Furnished Holiday lettings in the EEA? Monty, is this how you filled it in?
If it is an FHL I am assuming that you can put the initial purchase of furniture as a capital expense, then run this down against your profit for future years. Is this what others have done? Also for the weeks that you use the property, I assume that you take the number of weeks that you stayed there, divide by 52, multiply by the expenses for the year and use that as the "private use adjustment". Is that correct?
Thanks for any light anyone can shed on this,
David