Is French Livret A account interest taxable in UK?
Understanding tax obligations in the UK for interest earned from 'tax-free' accounts
UK tax residents will have to declare their Livret A income on their tax return
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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? W.A.
Yes, French bank interest is declarable by the recipient in the UK, if they are tax residents in the UK, including from any of the French ‘tax-free’ accounts. The latter status is only recognised by France.
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As the UK cannot tax this at source, you should do it 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 by 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
