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Posted Fri, 07 Jul 2023 13:37:30 GMT by Florian
I have a property which is rented in France but I am a fiscal resident in the UK. I am aware that I have to report this income using SA106. However, I am not sure how to consider the "taxe foncière" already paid to the french administration. This is a separate tax than the income tax. " Property tax on built properties (TFPB) You own or usufructuary of built properties? You have to pay property tax on built properties (TFPB). There are exemptions related to the property or the person who owns it. We present you with the information you need to know." -- from -- Is that to be considered an expense and can be deducted in case 17 of page F4 of SA106 or is that a foreign tax taken off (Box C on page F4)? Thank you.
Posted Thu, 13 Jul 2023 13:27:59 GMT by HMRC Admin 10
Article 24 of the UK / France double taxation agreement relates to the elimination of double taxation and states at 24(1)(a) ""French tax payable under the laws of France and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within France (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which French tax is computed"".
This clause would allow the ""taxe foncière"" to be claimed as a foreign tax credit at box F2 on SA108, so that up to 100% can be credited against any UK tax payable."
Posted Thu, 20 Jul 2023 13:10:43 GMT by Florian
Hi, Thank you for this. I do expect this was a typo and you meant "box F2 on SA106" and not "SA108". Furthermore, If I enter the amount of the tax in box F2, should I still report the tax paid in box C "Foreign tax taken off or paid" of page F4 and then had an 'X' in the same row in column E to claim FTCR? Many thanks.
Posted Thu, 27 Jul 2023 11:25:31 GMT by HMRC Admin 5
Hi Florian

Yes this was a typo, sorry. Box 2 of SA106 is used to declare the foreign tax credit being claimed.  
SA108 relates to capital gains and should also be completed if there is a foreing capital gain.

Thank you

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