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Posted Tue, 16 Aug 2022 14:49:37 GMT by SevySev
Hi, I cannot find the information to my question on the HMRC website. Here goes. I live in the UK and am French. I have some income from France (bank interest), which I have already declared in my self-assessment. I am looking to make a new kind of investment, and I don't know how I will have to declare it and how much it will be taxed in the UK. There is a French company that uses crowdfunding to purchase real estate, and they retribute the crowdfunders (who are all individuals), by giving them a part of their rental yield. This is done not in the form of dividends, or interest, but in the form of royalties. In France an individual can earn royalties. However on the HMRC website, all pages I find mentioning royalties address companies, not individuals. So how will I be taxed and how to declare it, should I pursue that kind of investment? Another thing to note is that, in France, there is no tax to pay on the royalties as long as their total amount earned is below the invested amount. Once you reach the amount, you start to pay tax on the difference. My question does not concern capital gain - which would apply if after, say, a couple of years, I was to sell my investments. So this is an odd one because it looks like rental income but it is not; it looks like interest or dividends income but it is not. It really is "royalties"! Can anyone advise please? Many thanks!
Posted Thu, 18 Aug 2022 12:10:50 GMT by HMRC Admin 2

The royalties would be declared as other income. 

Tax on foreign income

Thank you.

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