Moving to France can be a very exciting time, but before you can start enjoying the wonderful French way of life, you must ensure you comply with your tax obligations in France.
You will also have to inform HM Revenue and Customs of your change of residence and comply with your tax obligations in the UK as you leave the country.
It is important that you receive the right legal and tax advice in advance of your move to make sure you are meeting your tax obligations when living in France. We can also advise in detail about your tax residence status both in France and in the UK.
Your tax affairs may not be as straightforward as they seem to be as you may still continue to be regarded as a UK tax resident even if you have left the country.
A first step before you move out of the country is to consider if you could still be regarded as a UK resident, or considered a French resident, or both and from which date.
Your tax obligations and the way your income is taxed in either country will depend on your residence status.
The French tax system applies to all people who are fiscally resident in France, and those who own assets situated in France but may not be resident there.
Many of the taxes are recognisable as being similar to UK taxes, such as income tax, capital gains tax and inheritance tax. There are also other taxes that you may not have had prior experience of, such as wealth tax and social charges.
The tax year is different in France (being the calendar year) and the deadline dates for filing tax returns and paying tax due are different from the UK. Failure to comply with tax obligations in France can result in penalties and interest being levied by the tax authorities.
We can advise on your tax position and assist with the submission of French tax returns. We will tell you the deadline dates for filing and paying the tax and communicate with the tax authorities when necessary.
Where there are options for you to minimise your tax liability, we will discuss with you.
We can also advise you on what notifications you should send to HM Revenue & Customs for your tax year of leaving the UK and we can advise you on your continuing UK tax obligations after becoming non-UK resident, or where applicable liaise with your existing UK tax adviser.
The team comprises French and UK tax advisers who are experienced in advising on the tax position of tax residents in France or UK residents who own a French property investment.