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France cancels dual taxation on expat rental earnings and pensions
| Published: | 10 Jul at 6 PM |
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The French government has moved its position on double taxation of expat incomes, saying that UK expats should not be taxed in France on UK-earned or generated income.
Tax officials have stated that British expats living in France should not pay income tax in the country, nor should they pay tax on their UK state pensions or rental earnings from UK property. The announcement comes after a change in French tax law last year which saw French tax authorities believing they could tax expats on UK receipts and earnings.
The issue became complicated as French tax offices across the country took different stances, and led to an analysis of the existing double-tax treaty between the UK and France. The treaty disallowed double-taxing of the same income, once in the UK and then again in France.
The news is not all good, however, as expat income falling under the personal allowance threshold may still be able to be taxed in France as it is not taxed in the UK. The allowance for 2013-14 for UK taxpayers is £9,440, with a slightly higher level for pensioners over the age of 65.
French tax authorities are still in discussion over this issue and, until a decision is taken, no tax will be due on annual amounts received below the threshold. British expats are advised to check with their local tax office and with a local tax advisor for clarification.
Tax officials have stated that British expats living in France should not pay income tax in the country, nor should they pay tax on their UK state pensions or rental earnings from UK property. The announcement comes after a change in French tax law last year which saw French tax authorities believing they could tax expats on UK receipts and earnings.
The issue became complicated as French tax offices across the country took different stances, and led to an analysis of the existing double-tax treaty between the UK and France. The treaty disallowed double-taxing of the same income, once in the UK and then again in France.
The news is not all good, however, as expat income falling under the personal allowance threshold may still be able to be taxed in France as it is not taxed in the UK. The allowance for 2013-14 for UK taxpayers is £9,440, with a slightly higher level for pensioners over the age of 65.
French tax authorities are still in discussion over this issue and, until a decision is taken, no tax will be due on annual amounts received below the threshold. British expats are advised to check with their local tax office and with a local tax advisor for clarification.
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