DEJW

Hello

I'm new to this forum - it lloks very interesting with informed posts.

I'm struggling with French / UK tax residency, how have you managed this problem. A few details:

• I'm 65, British, and I've lived in France since 2010. I've got the Carte Vitale and all the other things necessary to enjoy French life
  
• I have a UK address, bank account etc that makes me look UK resident if I need to be.
  
• I have substantial investments in the UK, including PEPS / ISAS
  
• I've worked in France and have investments in France, including a PEA (roughly equiv to ISA). For these I look as if I am French resident.

Do I continue to play the "double residency", or do I go into hiding from both the UK and Fr taxmen?

....DejW

le plumber

I can't help that much as I'm a permanent resident but someone else will be along shortly to help you as this sort of thing has been asked before. I think it has something to do about the number of days you're resident in the country.
What I will say tho is that I wouldn't advise going into hiding - you're just looking for trouble....and at 65 years of age you should know better

cyrian

Hi
If you are resident in France for more than 183 days per year with a french wife; children and grandchildren then you should be honest and inform the UK that you are now resident in France.
You need to review your assets including property & savings with respect to Impôt de Solidarité sur la Fortune . If you have world-wide assets in excess of E790k then you will be liable to pay this tax.
Google the above and you will get more information.
Although tax in France starts at a lower level than in the UK, it starts at a lower % and increases. Reading other threads shows that there are many ways to reduce the tax-take in France.
You are 65 and therefore you are not caught in the health care trap that catches those under 65.
Do you have a Will? Is it a french Will or a UK Will. What happens if you die or are incapacitated?
Does someone in the UK have Power of Attorney to manage your UK affairs?
(Both personal care and financial). If not then your family would have to apply to the courts in the UK - a lenghty and expensive process.
You could leave your OH with a nightmare of a situation trying to sort this out.
You understand your financial affairs - State Pension; Private Pension; property and investments - not to mention UK family. You are the best person to sort this out.
You can also check this website http://www.notaires.fr/notaires/en/p...me?page_id=500 which might help.
I have to agree with le plumber - don't go into hiding - sort it out.

dmu

Hi,
Absolutely agree with the advice to consult a Notaire. You said in another post that you "inherited" children and grandchildren upon your recent marriage. If you have family in the UK, you must sort out your succession, whatever matrimonial régime you opted for, before it's too late. As mentioned, it'll be a nightmare for your French OH or step-children to sort out your UK assets, esp. if you have family in the UK who can claim.
If your new wife has an income to declare, it would be logical to declare all your assets/income in France, too.
I myself married a Frenchman with a family, and the succession between his first children and our own was somewhat complicated and only a Notaire could have sorted out the fairest arrangement for all concerned.
Hope this helps!

Scots in Treignac

I may have asked this before, but are there advantages in paying tax in the UK and in France.

I have heard of people paying uk tax on UK income after claiming allowances but paying French tax on French income also after claiming allowances.
This looks a bit dodgy to me.

I would be happy to paying uk tax on UK income after claiming allowances and pay French tax on French income withou claiming allowances.

I can't remember where, but I found on a French Government website a reccomendation that all Brits owning a French property would be advised to fill in a French tax form.

The ones on the web don't seemto come with help on how to fill them in.

My reasons for wanting to pay tax in France are that even with a small income from Chambre d'hote, I might qualify as an employed person and so gain access to the French health care and also to qualify for a grant for a wood burning stove which is being installed at the moment.

cyrian

I think that there is no simple answer to your question.
However, you have only limited control over what happens.
If you are resident in one of the countries for more than 183 days then you are deemed to be "tax resident" in that country. You do not have a choice in this.
If you are "tax resident" in France then you should declare this to the UK government and can choose to have income like the State Pension to be paid in France. Certain income e.g. civil service pensions can only be paid net of UK tax. If you have a private pension fund then you can opt to transfer this into a QROPS and avoid the restrictions and taxation (including IHT) on the fund. New regulations were announced yesterday on such UK funds.
You must declare any UK income and tax paid to the french tax authorities (or vice-versa).
You will have to take advice about which system means you pay less tax.
If you stop paying NI contributions in the UK and you are under 65 then you will be covered for healthcare in France for only 2 years and will have to acquire cover under the french system after this period.
Unlike in the UK, you will have to continue to contribute to the french social fund (NI) and pay for a mutual insurance after retirement including on savings interest from banks.
Depending on your level of income and capital assets you may have to consider french wealth tax which is paid annually.
Your question is a huge question which embraces much more than a simple answer on taxation.
My preference is to remain in the UK system which I understand.

cjm

You can declare in both countries, ensure each knows the detail, then you won't be taxed twice. The 2 years health link Cyrian speaks of is the maximum, depending when you left and moved to France it could well be less, perhaps 18 months. But as you are 65 this ought not to be an issue. One spouse can piggy-back the other for the Carte Vitale, depending which one hits retirement (60 or 65) first. If you'll excuse the inference, I am about to piggy-back my wife as I have a year to run to 65.
Agree with others, don't hide. If your or your wife's French is spot-on (which I assume) then go the French route. Can be tedious, but that's tax everywhere. Civil service pensions cannot be paid into France, but check out what is meant by civil servant, NHS pensions are payable direct.
Also, some UK banks won't accept non UK address, Santander for one; you have to fiddle an on-line account. Odd, given they are Spanish! So, you may have to hold a UK address and use internet banking. We do this, but we are not ducking the system. Just the system isn't flexible enough.

Im_and_Er

I have heard nothing of this, can you give me a link please ?

Ka Ora!

Googling brings up loads of results,

http://www.frenchentree.com/fe-finan...e.asp?id=32421

http://www.connexionfrance.com/use-a...s-article.html

It's made me curious, Because im in receipt of an personal occupational pension but I qualified 30 years early for payment.

So could I transfer it and the payment remains intact without coming under new payment rules.

Im_and_Er

Thanks but I know all about QROPS - I have one - and those links are old hat.

It was your reference to 'new regulations announced yesterday' which piqued my interest.

PS:

British pensions that can be transferred to a QROPS include former employers’ occupational schemes (but not final salary or defined benefit schemes already in payment); Superannuation Schemes; Executive Pension Schemes; Self Invested Personal Pension Schemes (SIPPSs); Small Self Administered Schemes (SSASs); Section 226 Personal Pension Schemes; Section 32 Pension Transfers and Personal Pensions.

You cannot transfer British Government or State pensions to a QROPS.

Ka Ora!

It's all rocket science to me, I just want the best out of the monthly payment.

Im_and_Er

I beg your pardon, it was cyrian who mentioned new regulations not you.

It's not so hard by the way but common wisdom is that you need a fund of at least £120-150k to make a QROPS worthwhile.

cyrian

Sorry Not new regulations on Qrops but UK private pensions.
i.e. pensions that have not yet been crystallised ( not converted to annuities or drawdown.)
The Govt has announced new regulations to be implemented from next April with regards to private pensions removing the requirement to buy an annuity and changing the tax charge on pension funds pre-75years and post 75 years.
Google pension changes or annuity changes - there are plenty of articles in the UK financial press.
The tax-take on over 75 funds will reduce from 82% to 55%.
One of the main reasons for opting for Qrops was to avoid the punative tax charges and inheritance tax charges on pension funds. These new regulations make the over 75s better off to the detriment of the under 75s who will suffer an increased tax rate from 35% to 55%
The changes only effect those with large pension funds i.e. the top 5% but those were the people who gained from transferring offshore in any case.

cyrian

I did refer to "such UK funds" but I accept that my wording was not clear.

Im_and_Er

Yes, the way it was written, i.e. 'on such UK funds' seemed to imply some new regulations in regard to QROPS, no big deal