Last year my husband and I declared interest from a UK bank account to be taxed in France and then reclaimed the money from the UK. This account must be taxed in the UK.

I would value your opinion on which is better for us to do, declare this interest as taxed in the UK or to have it taxed in France and then reclaim it back from the UK.

The interest after tax is £8,477.74 and tax deducted is £2119.44 which at today’s exchange rate equates to €2655. Our only other income is joint work-related pensions of £12,029.

Last year’s taxes were E1750 Avis d'Impot and E1736 Contribution Sociale.
BM


It is generally always the case that foreign bank interest is best declared gross, then taxed in France and the gross interest made liable to the social charges, rather than the net interest being exposed to tax in both the UK and France plus the French social charges.

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