French Tax Bulletin: Welcome changes for some UK expatriates in France and UK tax residents with French property income and gains

French Tax Bulletin:?Welcome changes for some UK expatriates in France and UK tax residents with French property income and gains

2022 TAX RETURN FILING DEADLINES CONFIRMED

The 2022 French tax season filing deadlines have now been announced and are very similar to previous years. The online filing portal on?impot.gouv.fr?will be opened for online filing from 7th April and the online filing deadlines are staggered by?département?as follows:

• Départements 1 to 19: 24 May
• Départements 20 to 54: 31 May
• Départements 55 to 976: 8 June

Paper returns must be submitted before?Thursday 19 May?regardless of the taxpayers’ tax residence.

BREXIT: THE EXEMPTION OF CSG AND CRDS ON FRENCH PROPERTY RENTALS AND GAINS RECEIVED BY UK RESIDENTS AS WELL AS FOR SOME UK EXPATRIATES LIVING IN FRANCE IS MAINTAINED

In a recent update of the?www.impots.gouv.fr?FAQ on the effects of Brexit,?the French Administration has done a complete U-turn when it comes to the application of the social surcharges known as CSG and CRDS on French source income and gains received by UK tax residents, generally arising from French real estate.

These charges apply to the net French income or gain at the rates of 9.2% and 0.5% respectively.?The French Administration’s doctrine now stipulates that the United Kingdom's exit agreements from the European Union signed on 12 November 2019 and 30 December 2020 make it possible to maintain this exemption from 1 January 2021 onwards.?This exemption would normally have been reserved for EU/EEA and Swiss residents.

UK nationals living in France and holding a valid S1 health cover form should also benefit from an ongoing exemption of CSG and CRDS levies on their non-French investment & property income and gains.?

The CSG and CRDS exemptions are subject to the following conditions:

• The taxpayers must be affiliated to a UK social security system – that is to say the UK pays for their health cost;
• they are nationals or residents of France, the United Kingdom or another EU/EEA Member State or Switzerland;
• they are not affiliated under any compulsory French social security regime.

The social surcharge known as the Prélèvement de Solidarité of 7.5% will however continue to apply.

The Administration also specifies that, taxpayers who have already been subjected to the CGS and CRDS, for instance, on their French property capital gain, will be able to claim a refund before the end of the second year following the sale.

Should you have any queries please contact?Virginie Deflassieux?or?Catherine Le Pelley.?

This publication has been carefully prepared, but it has been written in general terms and should be seen as containing broad statements only.?It cannot be relied upon to cover specific situations without obtaining professional advice.

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