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Discussion Starter · #1 · (Edited)
As 'part time' expats (we have a home in UK as well as a home in france) we have recently been spending more time in France than in UK. We are both pensioners and l our income tax is at present paid in UK, but if we continue to spend a considerable ammount of our time in France, should we pay our income tax there?
 

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If you are splitting your time between the UK and France, you need to establish in which country you are "resident" (at least for tax purposes). Tax residence is conveniently (for the tax authorities) determined by "the facts and circumstances of the particular case" which means there are any number of criteria you need to weigh.

First, there is the old rule of thumb about 183 days spent in or out of the country. Most countries say that there is a "presumption" of residence if you spend at least 183 days physically in the country. And many countries (including, I believe, the UK) are willing to consider you a non-resident and thus no longer subject to income taxes if you can show that you spend at least 183 outside their country.

The other big factor is where do you have your "principle centers of interest"? - this usually means where do you work, live (i.e. sleep at night), have your bank accounts, use the medical system, have "your" doctor, lawyer, etc.?

If you're close to splitting your time 50 - 50 between the UK and France, you may want to take a decision on which country you are resident in, and then structure your "principle centers of interest" to support that choice.
Cheers,
Bev
 
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As Bev said, plus I'm not sure how long you have to be fiscally resident - vague memories of a two year period? - before French inheritance law takes over. That may or may not affect you of course, depending on your situation.
 

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Discussion Starter · #4 ·
If you are splitting your time between the UK and France, you need to establish in which country you are "resident" (at least for tax purposes). Tax residence is conveniently (for the tax authorities) determined by "the facts and circumstances of the particular case" which means there are any number of criteria you need to weigh.

First, there is the old rule of thumb about 183 days spent in or out of the country. Most countries say that there is a "presumption" of residence if you spend at least 183 days physically in the country. And many countries (including, I believe, the UK) are willing to consider you a non-resident and thus no longer subject to income taxes if you can show that you spend at least 183 outside their country.

The other big factor is where do you have your "principle centers of interest"? - this usually means where do you work, live (i.e. sleep at night), have your bank accounts, use the medical system, have "your" doctor, lawyer, etc.?

If you're close to splitting your time 50 - 50 between the UK and France, you may want to take a decision on which country you are resident in, and then structure your "principle centers of interest" to support that choice.
Cheers,
Bev
Thanks Bev, I was rather afraid the answer might make things more complicated! We only got our Carte Vital a short while ago, so I guess that makes us French residents, though having returned to uk and find we need a Doctor, life has got complicated; I think maybe we will undo what has been done and stay UK residents. There's a lot to be said for it, even though we complain.
 

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Discussion Starter · #5 ·
As Bev said, plus I'm not sure how long you have to be fiscally resident - vague memories of a two year period? - before French inheritance law takes over. That may or may not affect you of course, depending on your situation.
Thank you - didn't think about that one. It's not as easy as it seems is it? Shame.
 

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Thank you - didn't think about that one. It's not as easy as it seems is it? Shame.
Hi,
Before making up your minds you should know that if you have a typical ,modest pension income you will almost certainly pay less tax as a french resident.
As you have a carte vitale, you should ask your CPAM for a CEAM card (the equivalent of the old E111)before going back to the UK, this entitles you to free treatment there.
As for french inheritance law , in many cases it is more convenient than the UK's.
( It allows gifts with reservation, for example).
 

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Discussion Starter · #7 ·
Hi,
Before making up your minds you should know that if you have a typical ,modest pension income you will almost certainly pay less tax as a french resident.
As you have a carte vitale, you should ask your CPAM for a CEAM card (the equivalent of the old E111)before going back to the UK, this entitles you to free treatment there.
As for french inheritance law , in many cases it is more convenient than the UK's.
( It allows gifts with reservation, for example).
Hi Parsnips, thank you for your comment. We have the CEAM, but it seems to confuse NHS practioners. It doesn't do as it says on the tin, and it is difficult to determine exactly what we are entitled to. A bit annoying after 50 years of non-stop contributing. We are still learning, and it's a bit of a tough lesson sometimes. We are getting there, but it's a struggle and I don't think it should be.

:confused2:
 
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