Tax on French holiday homes

Families that have holiday homes in France are being warned to make sure they keep up to speed when it comes to taxation.

Although many people believe that if you have an overseas income you do not have to declare it in the UK, this claim is in fact untrue.

As a UK resident, any money earned abroad, including that gained through buy to let holiday homes in France, must be declared to the tax man or you risk being fined.

Amnesty announced on French earnings tax

According to the latest figures, around one in five people do not declare they are getting rent from holiday homes, usually because they are unaware that they have to do so.

Accountancy firm Grant Thornton says that this could add up to £5 billion in unpaid tax, interest and fines which is owed to HMRC.

Yet it seems that even those who have failed to declare their earnings abroad are being given a second chance, with the government announcing an amnesty allowing people to declare within the next two months and get a reduced charge.

Get up to speed on property tax laws

Up until June 22nd anyone who declares they are earning rent from a French holiday home will be charged a reduced penalty of ten per cent, 90 per cent less than the usual fine.

Paul Roberts, tax investigations partner at Grant Thompson, said: "HMRC will vigorously pursue those who do not take advantage of this tax 'amnesty' and even some of those who do, if they believe there is cause for further investigation.

"Recriminations for people in this position will be severe with penalties starting at 30 per cent. HMRC is certainly making it clear that they will not be messing about with suspected tax evaders."

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