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Can I get social charge credit on bank interest if have S1 in France?

A British S1 holder asks if they can claim a tax credit against social charge deductions from their French savings account

We look how having S1 healthcare affects your French taxes Pic: Natee Meepian / Shutterstock

Reader question: I am British, live in France and as a retiree have an S1 form for my healthcare. When I receive interest from my French savings accounts, social charges are deducted. Could I claim a tax credit for these when I complete my French tax return? 

There are actually no 'tax credits' as such for social charges. 

However, residents of France who are linked to an EU/EEA/ Swiss or UK healthcare system and not a burden on the French social security system can pay social charges on property and investment income at a reduced rate of 7.5% (instead of 17.2%) which is confirmed by ticking box 8SH on the annual income declaration. 

If you have been paying too much and this is not refunded after your declaration we suggest you contact your tax office about it. 

Once your bank is aware of the situation, it should make the levies at the correct level in future years. 

An S1 provides the right to the French healthcare system at no cost and, for those eligible, this replaces other forms of entitlement, such as Puma (protection universelle maladie) which is allowed by right of residence. 

To benefit from the S1, a British resident in France usually needs to be receiving a UK state pension. 

There is also an exemption (not a tax credit) from French social charges on foreign pension income for those in this situation but it only applies to pension income. 

Please note that the fact you have paid these charges already on this income means that the income from these accounts should have been prefilled in the box 2BH in your French declaration so that they are not charged again. 

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Income Tax in France 2023 (for 2022 income)*
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- Primarily aimed at Britons, covers pensions, rent, ISAs, shares, savings and interest - but also contains significant general information pertinent to readers of other nationalities - Overview of online declarations + step-by-step guide to the French printed forms - Includes updates given automatically after this year's site opened
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