France-UK Double Tax Treaty

France-UK Double Tax Treaty

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Hi I have a situation where a client has been taxed on private pensions and bank interest. We submitted form-France to receive these sources of income as gross going forward which was done. We also asked for repayments for earlier years as the person was non-resident here.

HMRC refused saying the claim was out of time and so we suggested to the French advisor to show the gross uk income on the Frnehc tax return but give credit for UK tax deducted. French adviser states he has to show gross income and be taxed in France - no UK tax credit can be given and we have to reclaim it backfrom the UK authorities - which would be easy to do but with the claim being out of time they are refusing it.

Is the French adviser talking a load of nonsense? I've looked at the tax treaty but it's not very clear....

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By godwinsj.hotmail.com
18th Jan 2011 15:24

How Far Back

Hi

 

I am a French tax adviser,how far does the claim go back?

There is no section in the French tax return to reclaim this tax or get credit(only for income taxable outside France)

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By bigshot-tycoon
18th Jan 2011 15:37

The claims...

go back to 2004/05  and 2005/06.

 

Although HMRC recieved the claims prior to 31 March 2010 they were incomplete and they are claiming the claim was not completed until mid 2010. We are arguing with HMRC on the basis the claims were submitted on time even though incomplete and the taxpayer intended to claim.

 

I just thought even if they were out of date or for whatever reason, surely relief could be given via the French return?

 

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By godwinsj.hotmail.com
18th Jan 2011 15:46

Not Much Chance

I assume that the French returns for the relevant years have already been submitted and the tax paid,so I don't see much joy there.

 

Under the DT agreement France is correct and the Uk is wrong as you say the claim was made before the deadline

 

Sorry!

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By bigshot-tycoon
18th Jan 2011 16:31

Thanks for the reply

Yes unfortunately the Returns have been filed and any tax paid across to Frnehc authorities. Out of curiousity if the French Return had not been filed could the uk income together with the related tax deduction be shown on it so that the level of French tax suffered is reduced?

Thanks once again.

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By godwinsj.hotmail.com
18th Jan 2011 16:59

No

Because the income is taxable in France and not UK it is not open to a credit on the French return, I have however seen returns where only the net income has been declared (incorrectly)

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