Taxation on rental income

Reader's query on taxation on their rental income.

I have been told if I let my only home in France and rent in the UK I will not be taxed on the rental income in either France or the UK. Is this true? R.F.

No, it is not true. If you let your home in France, the income will be liable to taxation since all income is liable to taxation with minor exceptions such as certain French tax-free bank account interest]. If you rent a property in the UK because you have nowhere else to live, then you will be a UK tax resident, and the income from the above let will be taxed first in France, and then in the UK with a tax credit for the tax paid in France.

Reader's query answered by Hugh MacDonald

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