When it comes to paying tax, for UK expats in France, it can sometimes seem like a complicated process with rules for this and that. We answer some of the most common questions that UK expats ask when it comes to tax in France.
Question: I moved to France last year. I have a teacher’s pension and state pension which are taxed in the UK. Does that mean I don’t have to complete a tax form in France?
Answer: You have an obligation to complete a tax form in France now that you are resident here. For the current tax payment year you need only complete for the portion since the date you arrived. The tax forms aren’t available until April/May of each year and then the response from the tax office is due by August of each year.
You must list all of your income on the tax return and the Double Taxation Treaty between the UK and France will dictate whether it is taxable or not. In this case the UK state pension is taxable in France. Your teachers’ pension remains taxable in the UK.
The teacher’s pension must be listed on your French tax form, but you will receive a credit for tax already assumed to have been paid.
You will currently receive a tax allowance in France as well as a tax allowance in the UK.
During the time that you transfer to France and set up the administrative processes. There may be a period where your state pension continues to be taxed in the UK and this can be reclaimed using a specific form https://www.gov.uk
The downside is you can’t have this form certified until you have a tax reference number known as a ‘numero fiscal’ issued by the French tax office. Completion of the p85 form to confirm to HMRC that you have left the UK isn’t enough to get the changes made.
If you’d like to find out more or have questions about how to maximise your investments, contact Jennie for an obligation free consultation at: jennie@abc-eu.com
This communication is for informational purposes only based on our understanding of current legislation and practices which is subject to change and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
ABC-EU are members of Nexus Global (IFA Network). Nexus Global EU is a division of Blacktower Financial Management (Cyprus) Limited (BFMCL) and Blacktower Insurance Agents & Advisors Ltd (BIAAL). ABC-EU is an Appointed Representative of BFMCL which is licensed and regulated by the Cyprus Securities & Exchange Commission (CySEC) – Licence No. 386/20. ABC-EU is an Appointed Representative of BIAAL which is licensed and regulated by the Insurance Companies Control Service (ICCS) – Licence No. 5101
