Thursday 18 January 2007

Tax Tips for UK residents moving to France

Don't be tempted to run for the French hills and leave your tax bills behind you - the long arm of the taxman easily stretches across the channel.

But don't worry - with the 'double imposition' treaty in place between the UK and France, you will only pay your dues once. To tie things up neatly before you leave heed the following advice:

  • Complete and return an Inland Revenue Form P85 giving your departure date. The Inland Revenue will then settle your tax liability.
  • While you are still a UK resident think about taking any tax-free cash commutation from your pension - it might not be so easy when you are already in France.
  • While you will be entitled to receive your UK pension while living in France, it might be a good idea to get a forecast of your future entitlement from the Department of Work and Pensions. You might need to top up your Class 3 Contributions to obtain a full pension. Contact www.thepensionservice.gov.uk

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