Tax issues when hosting in France

[Derek-And-Rachel0]

Good afternoon. We have just started with Airbnb and we are UK residents. 

We rent our house in France through Airbnb. This is a second home. 

We have no idea how we should manage the tax implications for rentals both in terms of the UK and France.

In terms of the UK I imagine that we need to inform HMRC and do a tax return (something we have never done as our employers did this previously).

We have heard of another tax implication in France. How this works I have no idea and I would be grateful for any advice and guidance anyone can provide. We certainly do not want to be paying two lots of tax.

Thank you. 

Derek

[Mike-And-Jane0 · Accepted solution]

@Derek-And-Rachel0 The bad news is it is complicated - the good news is you won't pay tax twice. In simple terms you must declare and pay tax in France then fill out the UK return and somehow let them know what French tax you have paid so that you are only taxed a small amount (if anything). I would consider getting an accountant versed in UK/French taxes to at least do your first returns. I have no idea if there is a French equivalent of the UK tax free allowance or what their tax rates are

An added complication is that the tax years are not aligned as I don't think anyone else works to our rather bizarre April 5th tax year end.

[Derek-And-Rachel0]

Thanks for coming back to me so quickly. I will seek specialised advice. 

best wishes