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Posted Tue, 01 Aug 2023 17:00:55 GMT by Elve
I have always been UK resident and domiciled. When I sold a property that I owned in France in February 2021, French social charges were deducted from the sale proceeds by my financial representative in France, due to tax rule changes arising from Brexit. These social charges were not an allowable deduction for UK Capital Gains Tax on the property sale. After the Brexit agreement was finalised France agreed to refund social charges to UK property sellers, with interest. I received my refund of French social charges in October 2022, with interest. I know that the social charges refund is not taxable because it was not an allowable deduction against the capital gain on the sale of property, but is the interest received from the French tax authorities taxable in the UK? Or is it outside the scope of tax like UK tax repayment supplement?
Posted Fri, 04 Aug 2023 15:28:13 GMT by HMRC Admin 5

You would need to declare the interest received but any tax due would be dependant on any other interest you have for the year as all your interest would fall under the interest savings allowance of £1000 or £500 if you are higher rate.

Thank you

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