Can we opt out of the ordures ménagères tax?

Tax on ordures ménagères is based on the whole of the year irrespective of the time that you actually spend in France.

It is levied on the basis that you pay the taxe foncière and, like that tax, may be reduced under certain circumstances, notably if periods of absence are forced on you; however this would not apply to you using the property only as a holiday home.

It is calculated in a similar way, with a percentage rate applied to half of the theoretical annual rental value of the property, (in certain communes it may also include an ‘incentive’ element based on how much rubbish is produced so – should that apply to your commune, taking more rubbish to the tip might possibly lower the bill).

Having said that if your commune is one of those that levies the Redevance d’enlèvement des ordures ménagères (REOM) as an alternative to the Taxe d’enlèvement des ordures ménagères (TEOM) this levy is theoretically only due if you actually use the service (you could check this with your mairie). If this is the case, according to judicial precedents, you may be required to provide evidence that you dispose of all your rubbish yourself and that you do so in an environmentally-friendly way.

Will I obtain reduction?

I understand there is to be a reduction in the local tax, taxe d’habitation. Will this be automatic or must I apply? I received a bill in December for payment by a date this year, but this did not show any reduction. K.T.

The reduction relates to taxe d’habitation payment for this calendar year (2018) – and thus it makes no difference when you pay 2017’s tax.

It is automatic and for those eligible it will mean a third off their bill in 2018, with another third off in 2019 and a final third (leading to full exoneration) in 2020.

Eligibility is based on 2017 income levels for your household having been below certain ceilings. Your revenu fiscal de référence shown on your last income tax statement (net taxable income) should, for example, not have been more than €27,000 for a single person, €43,000 for a childless couple, €49,000 for a couple with one child or €55,000 for a couple with two.

UK endowment policies

I have a UK endowment policy and plan to pay off the mortgage to which it relates, move to France and continue paying the premiums until maturity. How will the authorities in the UK and France treat this upon maturity for tax purposes? C.M.

Without knowing exactly what type of endowment plan you have it is difficult to say precisely but, in general, if the contract is one of the so-called ‘qualifying policy’ type, then the proceeds of an endowment plan on exit are tax-free from the inception of the contract as long as there is no ‘material change’ to the contract during its life (for example that may apply if the premiums have been halved or doubled at some point).

Taxed twice on pensions

My wife and I are under the age of 65 and receiving UK pensions. I pay UK income tax, which I believe is correct under the double taxation agreement between Britain and France. Last year (my first full year in France) I also paid French income tax on the same pensions, as though I had not paid tax in the UK. The UK tax is higher than the French tax. Can I reclaim the French tax? C.A.

The rules concerning the double taxation agreement are:

‒ State old age pension is taxable only in France under article 18 of the Convention.

‒ Private and corporate pensions are again taxable only in France under article 18.

‒ ‘Government’ pensions for service to the British government (incomes from those such the emergency services, military, government and diplomatic service) are taxed in the UK, but are taken into account in France in the income tax calculations in order to effectively increase the tax rates at which other income that is taxed in France (such as pensions other than ‘government’ ones) are themselves taxed at.

So yes, you can claim the tax overpaid, whether from the UK on the state pension and private and corporate pensions or from France if they have taxed (and not just ‘taken into account’) any government pensions that you might have.

Note that if you have not done so you should notify the UK that you are French tax residents now so that you are not paying UK income tax on income that should only be taxed in France. This is usually done on Form France-Individual which you can find at gov.uk

Reader's query answered byHugh MacDonald

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