Is French Livret A account interest taxable in UK?
We review the tax obligation in the UK for interest earned from French 'tax-free' accounts
The UK also offers tax free savings accounts
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Reader Question: Livret A bank accounts are tax-free in France for all. As a Briton with a second home in France, is the interest taxable in the UK?
Yes, French bank interest is declarable by the recipient in the UK, if they are tax resident in the UK, including from the French ‘tax-free’ accounts. The latter status is only recognised by France.
Read more: How to change bank account in France - and points to consider
As the UK cannot tax this at source, you should declare via the UK self-assessment process,
If you have not done this before, the simplest way is to do it online, though you have to first register to do so, at gov.uk/register-for-self-assessment no later than October 31, 2024 for the UK 2023-2024 tax year ending on May 5, 2024.
UK self-assessment tax returns for the same period need to be completed by January 31, 2025 at the latest (or October 31, 2024 if filing by a paper form).
The UK declaration includes a specific ‘foreign’ section, but you only have to use this if you have more than £2,000 of foreign tax-free income, according to HMRC, and can otherwise put it in the main part of the form, in box 3, converted to pounds.
Read more: You can now earn interest on some current accounts in France
