UK Dividends and Interest: How to Declare Them in France (2026)

UK dividends and bank interest are both taxable in France as a French resident. The UK dividend allowance and personal savings allowance have no effect here. This guide covers the declaration route for each income type, how the PFU vs progressive scale choice changes what you enter, and the S1 holder treatment for investment income.

If you hold UK shares, funds, or bank accounts and you live in France, the dividends and interest they generate are part of your worldwide income and must be declared on your French tax return. The UK's dividend allowance (currently £500) and personal savings allowance (£500–£1,000 depending on your UK tax rate) are domestic UK reliefs — they have no status in French tax law and provide no exemption in France.

This guide covers how to declare each income type correctly, what to do if UK tax was withheld at source, and how the PFU vs progressive scale choice affects your entries.

For the broader question of which option — PFU or progressive scale — is likely to produce a better outcome for your household, see our guide to PFU vs Progressive Tax: Which Is Better for Your Investment Income?

This article is part of the Tax Treaties & Your Income category, which covers how the UK-France treaty affects specific income types.

The Two Income Types and Why They're Treated Differently

Although dividends and interest both end up as investment income on your French return, they use different boxes, different allowances, and have different withholding tax rules. It's important not to mix them up.

Dividends from UK shares and funds:

• Declared on Form 2047 Section 2 and Form 2042 Box 2DC
• If you elect the progressive scale, a 40% allowance is applied automatically — you do not deduct it yourself
• UK withholding tax is rare but if it occurs, a French treaty credit mechanism exists

Interest from UK bank accounts and bonds:

• Declared on Form 2047 Lines 250–252 and Form 2042 Box 2TR
• No 40% allowance — interest does not qualify for this relief even on the progressive scale
• If UK tax is withheld at source, there is no French credit mechanism — you must reclaim it directly from HMRC

Both income types are subject to the PFU flat tax at 31.4% by default (12.8% income tax + 18.6% social charges). S1 holders pay 12.8% income tax + 7.5% solidarity levy = 20.3% in total.

See the PFU / flat tax rates on the Taxpert reference data page →

The PFU vs Progressive Scale Decision

Before looking at the declaration steps, you need to have made one decision: PFU or progressive scale?

By default, dividends and interest are taxed at the PFU rate of 31.4%. You can elect the progressive income tax scale instead by ticking Box 2OP on Form 2042. Progressive income tax means you include the amount in the total household income and it is taxed based on the standard scales.

This election:

• Applies to all your investment income for the year — you cannot apply PFU to some income and the progressive scale to other income
• Is made by ticking Box 2OP before completing the rest of your return
• Changes what you enter in certain boxes, particularly around social charges

If Box 2OP is ticked, the 40% allowance on dividends is applied automatically by the tax office — do not attempt to deduct it yourself before entering figures.

Whether the progressive scale is beneficial depends on your marginal income tax rate. If you are in or below the 11% bracket, the progressive scale often produces a lower combined liability than the 31.4% PFU. See our PFU vs Progressive Tax guide for the full analysis.

Declaring UK Dividends

Route A — No UK Tax Withheld (Standard)

The UK generally does not withhold tax on dividends paid to French residents. This is the standard route for most UK share and fund dividends.

Form 2047 — Section 2:

• Enter the total gross dividend amount in euros on Line 220 (Revenus n'ouvrant pas droit à un crédit d'impôt)
• Repeat the same total on Lines 221 and 222 if you have no other foreign dividends from countries with a withholding tax credit

For a full explanation of how Form 2047 works and which sections apply to which income types, see our dedicated guide.

Form 2042 — Box 2DC:

• Enter the total gross dividend amount from Line 222 of Form 2047
• This box represents the household total across all dividend sources — add all UK and foreign dividends together and enter a single combined figure

Non-S1 holders — progressive scale only (Box 2OP ticked):

• Enter the same dividend amount in Box 2BH
• The Purpose of Box 2BH: This box is used by people who pay the full rate of social charges. It allows a deduction of a portion of those charges (the 6.8% CSG) from your taxable income the following year.
• Do not enter anything in Box 2BH if using the PFU rate.

Route B — UK Tax Withheld at Source

If your dividend statement confirms that UK tax was deducted at source, use Route B. This involves a treaty credit calculation on Form 2047.

Form 2047 — Section 2 (Route B):

• Line 203: enter the net amount actually received (after UK tax deducted), in euros
• Line 204: enter the applicable UK-France treaty rate percentage
• Line 205: calculated — the treaty-permitted credit amount
• Line 206: calculated — the actual UK tax withheld
• Line 207: enter the smaller of Lines 205 and 206 — this is the creditable amount
• Add Line 207 to Line 203 (net received) to arrive at the gross taxable figure. Enter this on Line 220 and carry the total to Line 222

Form 2047 — Section 7 (Crédit d'impôt imputable):

• Enter the calculated tax credit from Line 207 here. This transfers to Box 8VL on Form 2042 C

If filing online, check that the Line 207 amount has automatically appeared in Box 8VL on Form 2042 C. If it has not, enter it manually. Missing this step results in double taxation on the withheld amount.

Excess withholding: France will only credit the treaty-permitted rate. If the UK withheld more than the treaty rate allows, you must reclaim the excess directly from HMRC using the France/Individual double taxation relief form.

Form 2042 C — S1 Holders (Dividends)

S1 holders: Tick Box 8SH (Declarant 1) or Box 8SI (Declarant 2) under Revenus de source étrangère — cotisations sociales. This triggers the 7.5% solidarity levy rather than the full 18.6% social charges rate. See our guide on the S1 certificate for more on who qualifies.

Mixed S1 household — progressive scale only: If only one partner holds an S1 and Box 2OP is ticked, enter the S1 holder's individual share of the total dividend income in Box 8RC. Their portion is charged at the reduced solidarity levy rate; the non-S1 holder's portion is charged at full social charges and entered in Box 2BH.

Note for S1 holders on the progressive scale: You are not entitled to the 6.8% CSG deduction because you pay a reduced social charges rate. Do not enter your share in Box 2BH. Ensure your share is in Box 8RC instead.

Declaring UK Interest

Standard Route — No UK Tax Withheld

The UK generally does not withhold tax on interest paid to French residents. Declare the full gross amount regardless.

Form 2047 — Lines 250, 251 and 252:

• Enter the total gross interest amount in euros on Line 250
• Repeat the same total on Lines 251 and 252

Form 2042 — Box 2TR:

• Enter the full gross interest amount in euros
• This box represents the household total across all interest sources — add UK bank interest, bond interest, and foreign bank interest together and enter a single combined figure

Non-S1 holders — progressive scale only (Box 2OP ticked):

• Enter the same interest amount in Box 2BH alongside any dividend amount
• For a mixed S1 household with joint accounts: enter only 50% of the joint interest amount in Box 2BH (the non-S1 holder's share)

UK Tax Withheld on Interest

If UK tax has been withheld on interest payments:

There is no French credit mechanism for withheld UK interest. Unlike dividends, you cannot claim a treaty credit in France for UK tax deducted from interest.

Always declare the full gross amount (before UK deduction) on Lines 250, 251 and 252. Reclaim the UK tax withheld directly from HMRC using the France/Individual double taxation relief form.

Do not declare the net amount you received after UK tax. France taxes the gross income — if you declare the net figure, you will underdeclare your income and also lose the ability to reclaim the UK tax correctly.

Form 2042 C — S1 Holders (Interest)

The same S1 holder rules apply as for dividends — tick Box 8SH / 8SI and, for mixed households on the progressive scale, enter the S1 holder's share in Box 8RC.

Note on joint accounts: For a mixed S1 household with jointly held bank accounts, the standard assumption is that interest is split 50/50. The S1 holder's 50% goes to Box 8RC; the non-S1 holder's 50% goes to Box 2BH (progressive scale) or is simply included in Box 2TR without further separation (PFU).

Totalling Multiple Sources

Boxes 2DC and 2TR represent the household total for the entire year across all sources. You do not create separate entries per company or per bank account.

• Multiple UK share dividends → add all together → single figure in Box 2DC
• Dividends from UK shares and foreign shares → add all together → single figure in Box 2DC
• Interest from multiple UK banks → add all together → single figure in Box 2TR
• Interest from UK and foreign banks → add all together → single figure in Box 2TR

The same applies regardless of which partner owns the account.

Form 3916 — Declaring the Accounts

Separately from declaring the income, every foreign financial account must be declared on Form 3916 each year. This covers UK bank accounts, share dealing accounts, and investment platforms. The declaration is required annually whether or not the account generated income during the year.

The penalty for failing to declare a foreign account is €1,500 per account per year under Article 1736 CGI (for accounts in treaty countries including the UK). The income declaration and the account existence declaration are two separate obligations.

Taxpert's filing assistant consolidates your dividend and interest totals, converts each payment to euros at the correct exchange rate, and identifies the right boxes depending on your PFU vs progressive scale election and S1 status — so you enter the right figure in the right place first time.

Common Mistakes

1. Assuming the UK dividend allowance or personal savings allowance applies in France. They don't. Both are domestic UK reliefs with no effect on your French declaration. All dividends and all interest must be declared in full regardless of amount.

2. Mixing up Route A and Route B for dividends. Route A is the standard route for UK dividends — the UK generally does not withhold tax on dividends for French residents. Only use Route B if your dividend statement explicitly confirms tax was deducted at source.

3. Trying to claim a French credit for withheld UK interest. No credit mechanism exists for UK interest in France. Always declare the gross amount and reclaim UK withholding from HMRC directly.

4. Applying the 40% dividend allowance manually before entering figures. If you have elected the progressive scale (Box 2OP), the 40% allowance is applied automatically by the tax office. Enter the full gross dividend amount — do not subtract 40% yourself.

5. Entering interest in Box 2DC or dividends in Box 2TR. The boxes are not interchangeable. Interest goes in Box 2TR. Dividends go in Box 2DC. Mixing them up produces the wrong tax calculation because the 40% allowance applies to 2DC but not to 2TR.

6. Completing Box 2BH as an S1 holder. Box 2BH is for non-S1 holders on the progressive scale — it enables the 6.8% CSG deduction, which S1 holders are not entitled to because they pay a reduced rate. S1 holders use Box 8RC instead.

7. Not checking Box 8VL after Route B dividend entry. When filing online, the treaty credit from Line 207 of Form 2047 should automatically populate Box 8VL on Form 2042 C. Always verify it has transferred — if it hasn't, enter it manually.

Frequently Asked Questions

I receive dividends from a UK investment platform that holds shares in multiple companies. Do I need to list each company separately?

No. Add all the gross dividends together — regardless of how many companies or funds they came from — and enter a single combined total in Box 2DC. The breakdown per company is not required on the French return.

My UK bank account pays interest monthly. Do I need to declare each payment?

No. Add up all the interest payments received during the calendar year (1 January to 31 December) and declare the annual total. Convert each payment to euros at the exchange rate on the date of receipt, then add the converted amounts together.

I elected the progressive scale last year. Am I locked in this year?

No. The PFU vs progressive scale election is made fresh each year. You make the election for the current year by ticking or not ticking Box 2OP on this year's return. There is no carry-over from the previous year.

I have dividends and interest from both UK and French sources. Do they go in the same boxes?

Yes. Box 2DC is the household total for all dividends from all sources — UK and French alike. Box 2TR is the household total for all interest from all sources. French-source investment income does not use Form 2047 but ends up in the same boxes on Form 2042.

My UK dividends are reinvested automatically. Do I still need to declare them?

Yes. Reinvested dividends are still dividends — they are income in the year they are credited to your account, even if they are immediately used to buy more shares or units. Your investment platform should show reinvested dividends on your annual tax statement. That figure is what you declare.

I have a small amount of interest — under £100. Does it still need to be declared?

Yes. There is no de minimis exemption for foreign investment income in France. All amounts must be declared regardless of size.