cjm

We declare in come to HMRC and completed a French form for income on 'world' assets, in effect the same declaration for both countiries, though we are resident in France. So we pay tax in UK and now have a tax bill in France. Surely one does not pay tax twice.

dennerlymum

I shouldn't have thought so; did you include proof of payment of taxes in the uk; if not then perhaps you need to take this proof to the french authorities. Best route would be to make an appointment to discuss the matter...

Mitzyboy

Surely your tax is payable in your country of residence though. There will be a double tax treaty of course, but for instance in Spain (in general) if you live in Spain then thats where you pay your tax. If someone chooses to pay some tax in the UK then the Spanish will approach you for the balance payable under Spanish tax law. (i.e. difference between the rates)

cjm

No matter where you live as the prime residence, you cannot be taxed twice for the same income; the double tax treaty surely takes care of this.

Mitzyboy

You didnt read what I said. In general you are taxed "IN YOUR CONTRY OF RESIDENCE"

So if your country of residence is Spain, the Spanish tax authorities are expecting you to pay pax there. Thats where your tax is payable, not the UK.

If you pay it in the UK at, say, 20% and the Spanish tax rate is 25%, then the tax man in Spain will be looking for another 5% out of you. So you dont get taxed twice, you get taxed at the rate that you should be paying in your country of residence. In your case ..... France.

Me, I dont pay tax in either country because I researched it and made sure it was the best for me

G-J-B

Hi CJM. There is a double tax treaty. I'm assuming you spend most the year in the UK and your business is also located over there? If yours is a more complicated situation then the French and UK tax authorities should work together to ensure you don't pay twice.
If it's a case of declaring such things as worldly interest on foreign accounts and dividends, then its usually the case that you end up taxed twice and have to claim back the money. This year for example I sent this form (http://www.hmrc.gov.uk/cnr/form_france.htm) with my French tax return, and are hoping they pass it on to HMRC so that I can get reimbursement on tax paid twice with regards to interest paid.

Mitzyboy

He said he was resident in France, hence my comments as I assumed therefire he lives there

Annetje

Totally agree with Mitzyboy ... one has to pay tax in the country of residence. When we started paying taxes in France, we went to see ''the Guy'' who filled in the appropriate forms, to exit UK tax system and enter the French one. Worked out much cheaper for us

G-J-B

Someone how I missed that bit! D'oh.
I think there's very few exceptions of people paying tax to the UK when resident in France unless they have a complicated business setup and some excellent accountants. If you're resident in France, it's unlikely you need to pay any tax in the UK, as you would have handed in your P85 and jumped boat, so to speak.
Best thing would be to go down to your local impot and have a word. I've found them to be friendly and very helpful, and that's generally the experience most people have had.

dennerlymum

it isn't always as clear cut as you are all making out.
My hubby is legally resident in France ( we only have one house and its here) However, he works all over Europe for UK resident companies; thus sometimes he pays tax in France, sometimes in the UK and sometimes as is the case at the mo in Holland, where he has been stung for 42% tax!
Where you are resident for tax purposes is not always where you are resident for habitation purposes

Mitzyboy

I dont think I said it was Tax residency and habitation residence are different things .... however we are replying to the OP, who said that he resides in Spain. If he comes back and tells us that he works around the world then it may well be different (but not necessarily), and I did say "in general"

cjm

Okay, some helpful comments. Thank you. We have income from UK via rental property. HMRC are keen to tax us on this income. Otherwise just pensions, that are taxed in UK. If it is a case of claiming back or sharing documents, then will do.
Maybe we need to see the man /woman, though our affairs are not complicated, oh that they were.
Sorry Mitzyboy, caught your drift and aint you the lucky one! Nice when you can get it though.

Im_and_Er

Income from UK rental property is taxable in UK not France, as are public service pensions.

There is no way to recover the tax paid on either.

Im_and_Er

I'm sure we would all be interested to learn how this can be achieved within the law

Mitzyboy

Sure.

I am not of pensionable age.

My wife is, and she has her Government pension "taxed" in the UK under the dual taxation treaty agreement and uses her UK personal allowance

We filled forms and sent them to HMRC Nottingham to not be taxed in the UK, and now her UK state pension is taxable in Spain, using her personal allowances here

All perfectly legal and above board