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  • Foreign interest on foreign tax refund (foreign repayment supplement)

    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?