Tax planning before you go

It's of paramount importance that you are aware of all the necessary formalities for your departure from the UK and your arrival in France.

Tax-before

The France Buying Guide’s best advice when it comes to tax planning before you make the move to France is to consult a professional before you leave the UK. Some of the key things that you will need to look at include:
 

  • The implications depending on whether your new property is to be your new permanent or second home.
  • Whether you should become a tax resident – for example if you plan to both live and work in France. This ensures you do not have to pay tax in both the UK and France, thanks to a double tax treaty.
  • Notifying HMRC about your departure from the UK, not only as a formality but because it could result in a tax rebate.
  • If you are leaving behind a property in the UK, there will usually be HMRC tax implications to consider.
  • Any UK state pension benefits to continuing National Insurance Contributions when you move abroad.
  • A review of UK life assurance or savings policies – so that you can determine their relevance to the new situation.
  • Whether you will be able to contribute to ISAs as a non-resident of the UK.
  • Whether, and for how long, you can continue to pay into an existing UK pension and still receive tax relief – as a non-resident.
  • Advice around accumulated pension rights in the UK.
  • Large cash balances held in the UK; these can cause issues, moving cash deposits offshore to free up UK tax allowances could be an option.
  • The Statutory Residence Test and your residence status – especially if you are intending to split your time equally, or nearly equally, between France and the UK.
  • How to complete your required UK tax return, even after leaving the UK. Please note: there are now significant penalties for late submission.
  • Inheritance laws and taxation; these differ in France to in the UK, so it is important to seek professional advice to ensure your assets are protected for future generations.

 
You will also need to think about capital gains tax, inheritance tax, social security benefits and contributions, and interest and dividends.

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