UK-France Double Tax Treaty for STR Rental Income 2026 (Post-Brexit)
Convention fiscale France-Royaume-Uni du 19 juin 2008, art. 6 immovable property and art. 24 elimination of double taxation. How to file HMRC SA106 with French location courte durée income, reconcile with CERFA 2042 NR and what the FHL repeal on the UK side means for your French rental in 2026.
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UK-France Double Tax Treaty for STR Rental Income 2026 (Post-Brexit)
You live in London, you own a Provence villa or a Paris flat that you rent on Airbnb, and every year you face the question: where do I pay tax on the rental income, France, the UK, or both? The answer is governed by the Convention fiscale France-Royaume-Uni du 19 juin 2008 (the 2008 UK-France double tax treaty), which has not been replaced post-Brexit and continues to allocate taxing rights and provide the credit mechanism. This guide walks through art. 6 and art. 24, how to file HMRC SA106 alongside CERFA 2042 NR, what the FHL repeal on the UK side changed, and the audit pitfalls non-residents hit.
The 2008 Convention replaced the 1968 treaty and entered into force on 18 December 2009. Post-Brexit, no replacement is in negotiation: bilateral tax treaties survive EU exit because they are not EU instruments. The Convention is supplemented by the 2019 MLI (Multilateral Instrument) which added principal-purpose tests but did not modify the rental income provisions.
Article 6: Immovable Property Income Is Taxed Where the Property Sits
Art. 6 of the Convention says that income from immovable property "may be taxed in the contracting State in which such property is situated". For your French STR, the primary taxing right is France. The UK retains the right to tax the same income (under HMRC's worldwide taxation principle for UK residents) but must give credit under art. 24 to avoid double taxation.
So the cycle is: France taxes the gross or net (depending on micro-BIC vs régime réel) at the appropriate IR (income tax) bracket. The UK taxes the same source under the FHL successor regime (see below). HMRC then gives you a foreign tax credit equal to the lower of the French tax actually paid or the UK tax that would be due on the same income.
Article 24: Elimination of Double Taxation
Art. 24 of the 2008 Convention sets the credit method. For a UK resident with French rental income: the UK taxes the income, then grants a credit for the French tax actually paid (income tax plus prélèvements sociaux are both treated as creditable French tax under the HMRC interpretation post-2017).
The credit is capped at the UK tax due on the same income, so if the French tax exceeds UK tax (rare for low-income owners, common for higher-rate taxpayers using the 30% non-classé abattement) the excess is not refunded by HMRC and not carried forward. Plan the abattement choice to align with your UK marginal rate.
FHL Repeal: The April 2025 Shift
Until 5 April 2025, UK residents with EEA furnished holiday lettings (FHL) benefited from the FHL regime: the income was treated as trading income for capital allowances, pension contribution relief and CGT business asset disposal relief. The Spring Budget 2024 confirmed that the FHL regime would be repealed from 6 April 2025, aligning short-term rentals with standard property income.
Post-FHL repeal, your French STR is reported in the UK as standard property income on SA106, capital allowances on furniture stop (with transitional balancing charges in the first post-repeal year), mortgage interest is restricted to a 20% basic-rate tax credit, and BADR on disposal is gone (CGT taper or 28% standard rate apply).
Filing Sequence: France First, Then UK
The practical filing order matters because HMRC needs the French tax paid to compute the credit:
- April to June 2026: file your French CERFA 2042 NR for 2025 income (deadline varies by département and online/paper choice). Pay any IR plus prélèvements sociaux due. Keep the avis d'impôt as evidence.
- October 2026 to January 2027: file the UK Self Assessment (SA100) for tax year 2025-26 with SA106 (Foreign) and SA105 (UK Property) attachments. Online deadline 31 January 2027.
- SA106 entry: report French rental gross, expenses (under UK rules), French tax paid (IR plus prélèvements sociaux), country code FR, with the avis d'impôt PDF attached as supporting evidence.
- HMRC computes the credit and reduces UK liability. If France took more than UK due, HMRC issues no refund of French tax.
UK Resident, French Property, US Citizen Triangle
A UK-resident US citizen owning French property faces three jurisdictions: France (source), UK (residence), US (citizenship-based taxation). The 2008 UK-France treaty handles France and UK. The 1994 US-France treaty (and its 2009 protocol) handles France and US. The 1975 US-UK treaty handles US and UK.
The IRS treats French rental income on Form 1040 Schedule E with the foreign tax credit on Form 1116 for the French tax. The IRS does not credit UK tax on French source income (US source rules apply). Practical consequence: most UK-resident US citizens owe little US tax on French rentals because the French tax usually exceeds the US bracket, but the FBAR and Form 8938 reporting obligations still apply.
Reconciliation: CERFA 2042 NR vs SA106
The CERFA 2042 NR (Déclaration des revenus des non-résidents) is filed on impots.gouv.fr by 31 May 2026 (online, départements 50 and below) or 7 June 2026 (other départements) for 2025 income. The relevant pages: 2042-C-PRO for BIC location meublée and 2044 for any unfurnished segment.
The SA106 in the UK reports the same gross rental but applies UK accounting rules (cash or accruals basis, UK depreciation in lieu of French abattement). Common mismatches that trigger HMRC enquiry:
| Item | French treatment | UK treatment |
|---|---|---|
| Mortgage interest | Fully deductible under régime réel | 20% basic-rate tax credit only post-FHL |
| Building depreciation | Allowed under régime réel (2 to 3% per year) | Not deductible (only capital allowances on certain plant) |
| Furniture replacement | Deductible expense or amortised | Replacement of Domestic Items relief, like-for-like only |
| Platform commission | Fully deductible | Fully deductible |
| Travel to France | Restricted, often disallowed | Restricted, often disallowed |
Treaty Tie-Breaker for Dual Residents
If you split time between France and the UK to the point of triggering both residency tests (UK SRT plus French art. 4 B CGI), art. 4 of the Convention applies the tie-breaker: permanent home, centre of vital interests, habitual abode, nationality, mutual agreement. Most owners stay UK-resident under the treaty even when they spend 5 months per year in France.
The tie-breaker matters because under it your STR is still source-based for French tax (art. 6 prevails) but your worldwide income is UK-resident taxed. If France treats you as resident, all your worldwide income falls under French tax, plus a wealth tax exposure on French real estate above EUR 1.3 million (IFI, Impôt sur la Fortune Immobilière).
Practical Audit Triggers for UK Owners
- Filing only in France and not declaring on SA106: HMRC cross-references via the 2018 UK-EU CRS feed and DAC7. Penalty up to 200% of underpaid tax under the offshore matters regime.
- Filing only in the UK and not in France: DGFiP gets DAC7 platform reports, sees the rent without a French return, opens an enquiry and applies a 40% majoration plus interest.
- Claiming UK FHL treatment for the 2025-26 tax year: the regime is repealed, the claim will be rejected on assessment.
- Forgetting prélèvements sociaux as creditable French tax: HMRC accepts it post-2017 but only when the avis is presented. Without the avis, HMRC may credit only the IR portion.
- Using UK accruals income on SA106 when France used cash basis (or vice versa) for the same year, leading to a temporal mismatch. The tax due is identical over time but enquiries focus on year-by-year reconciliation.
Frequently Asked Questions
Did Brexit replace the 2008 UK-France tax treaty?
No. The 2008 Convention is bilateral and survives Brexit. No replacement is in negotiation. Brexit changed only the prélèvements sociaux question (UK owners now pay 17.2%, see our dedicated article) and the EU-wide directives that previously gave UK owners parity with EU residents.
Can I claim the UK personal allowance against my French rental income?
Yes if you are UK-resident, the GBP 12,570 personal allowance shelters the first slice of your worldwide income before treaty credits apply. If you are non-UK-resident with only French rentals as UK-source-equivalent, the personal allowance may still be available depending on nationality and treaty.
How do I evidence the prélèvements sociaux as creditable French tax?
Attach the avis d'impôt sur le revenu and the avis de prélèvements sociaux (separate documents, both available on impots.gouv.fr). HMRC accepts the prélèvements sociaux as creditable per the 2017 De Ruyter precedent and HMRC's 2019 manual update.
What if I sold the French property in 2025?
Capital gains on French real estate are taxed in France under art. 13 of the 2008 Convention. Non-resident sellers pay 19% IR plus 17.2% prélèvements sociaux on the gain after taper relief (6% per year of ownership from year 6, exempt after 30 years for IR, after 22 years a different schedule applies for prélèvements sociaux). The UK then taxes the same gain on SA108 with a credit for French tax.
Does the FHL repeal apply to French property too?
Yes. Pre-April 2025, French property qualified for FHL because France is in the EEA equivalent for the FHL test. From 6 April 2025, no FHL anywhere applies. Your French STR is now standard property income in the UK regardless of letting pattern.
Can I avoid French tax by routing rents through a UK Ltd company?
No. Art. 6 of the Convention covers immovable property income regardless of the recipient's legal form. A UK Ltd renting French property is taxed in France first under IS (impôt sur les sociétés) at 25%, then in the UK with credit. Most owners find the structure adds friction without saving tax.
For a treaty-aware filing pack covering France and UK in one engagement, see the Standard Package HostReady (France) which produces the CERFA 2042 NR plus an HMRC reconciliation memo for the SA106.