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UK income - individual emigrating to France

UK client has emigrated to France - taxation of his income once resident in France

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My client, a UK domiciled and UK national individual has emigrated to France.  This is intended to be a permanent move. 

He has retained his UK property which is being let out.  The Double Tax Treaty confirms that the income can be taxed in the UK and so in accordance with normal UK tax rules, as this is a source of UK arising income I will declare it on his UK tax return. 

He has however said that he intends to "pay his taxes in France" and so does not believe that he needs to declare the rental income in the UK.  Surely this cannot be correct?  It is UK arsing rental income so surely will be (potentially) subject to income tax in the UK?

He is also in receipt of UK pension income and in this respect I am confused by the wording in the Double Tax Treaty.  This suggests in Article 18, that subject to para 2 of Article 19, "pensions….paid in consideration of past employment to a resident of a Contracting State shall be taxable only in that state"

This would seem to suggest that the taxation of private/former employer pension income will be determined by the residence of the individual.  So once my client has become resident in France, this pension income will be taxable ONLY in France.  Am I reading this correctly?

As far as the UK State Pension is concerned, Article 19, para 2 states "Pensions….paid by….a Contracting State….shall be taxable only in that state…."

If my reading of this section is correct, this suggests that the UK State Pension will be taxable ONLY in the UK, irrespective of the residence for tax purposes of my client.

If anyone is able to provide any clarification I would be most grateful.

Replies (7)

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By godwinsj.hotmail.com
20th Mar 2017 15:02

UK rental Income taxable in UK -declarable in France
Employment Pension taxable in France
State Pension taxable in France

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By David Heaton
21st Mar 2017 10:43

The article about pensions paid by the UK government covers civil service pensions, armed forces pensions, etc, (ie, for working for the state) not the state pension. The pensions are both taxable only in France if the recipient is only resident in France.

The property income is nominally taxable in both the UK and France, but the UK gets first dibs. You need to consult a French tax lawyer, but my understanding is that French tax law exempts income that is taxable in the other contracting state, rather than giving a double tax credit in the British way, so there may be no tax to pay in France. Check locally!

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By Dick Stastey
21st Mar 2017 10:46

I believe that French tax is the first respondent's speciality.

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By stephenpotter
20th Jul 2017 12:12

Post deleted

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Replying to stephenpotter:
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By Portia Nina Levin
20th Jul 2017 11:35

Why not read the responses, which seem to me to answer your questions.

Conversely, your questions indicate that you haven't read the responses.

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Replying to Portia Nina Levin:
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By andy.partridge
20th Jul 2017 12:10

It might be that the OP does not trust the credentials of those who have hitherto replied. After all, they are merely strangers on a public forum.

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Replying to andy.partridge:
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By Portia Nina Levin
20th Jul 2017 12:17

The possibility that they, like me, might just make [***] up sometimes no doubt being the concern.

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