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Readers' forum: Foreign investment

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26 February 2019

Issue: 4685 / Categories: Forum & Feedback

Tax on rental and sale of French property

My client is UK domiciled and UK tax resident. He is thinking about acquiring a property in France as an investment to let it out.

His French lawyer has advised him to acquire the property through a société civile immobilière (SCI). According to his French lawyer such arrangements are common in France because of the domestic tax inheritance advantages.

According to the French lawyer the rental income that my client will receive will be taxed in France and subject to income tax. Although the SCI is in itself a ‘company’ the French lawyer confirmed that the SCI is regarded as ‘transparent’ from a French tax perspective and hence the income is taxed on the individual.

My first question is in respect of the UK tax treatment of this rental income. It appears from HMRC’s internal manual that an SCI is regarded as ‘opaque’ from a UK tax perspective and hence...

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Readers' forum: Foreign investment

© Copyright LexisNexis 2024. All rights reserved.

26 February 2019

Tax on rental and sale of French property

My client is UK domiciled and UK tax resident. He is thinking about acquiring a property in France as an investment to let it out.

His French lawyer has advised him to acquire the property through a société civile immobilière (SCI). According to his French lawyer such arrangements are common in France because of the domestic tax inheritance advantages.

According to the French lawyer the rental income that my client will receive will be taxed in France and subject to income tax. Although the SCI is in itself a ‘company’ the French lawyer confirmed that the SCI is regarded as ‘transparent’ from a French tax perspective and hence the income is taxed on the individual.

My first question is in respect of the UK tax treatment of this rental income. It appears from HMRC’s internal manual that an SCI is regarded as ‘opaque’ from a UK tax perspective and hence...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4685

Categories: Forum & Feedback [1]

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