Your tax declaration

Each French resident over the age of 18 has to make an annual tax declaration, even if they have no income. This also applies to non French nationals who are resident in France, and anyone who has French sources of income e.g. from a French property.

The tax return for 2007 (based on a calendar year) in France is due at the end of March 2008. Voluntary late declarations can often be made without penalty, by negotiation with Centre des Impots so don't delay if you still need assistance. There are various deductions and personal allowances available. French income is declared and tax calculated by household, rather than by individual.

Residency

Residency is based on where you actually spend your time, and is not a matter of choice - therefore if you live in France for a significant part of the year, you will be classed as a French resident. This will apply if you plan to stay in France permanently. You may also be classed as still resident in the UK in any tax year where you visit the UK regularly, especially if you still keep a home in the UK.

If someone is considered to be tax resident in France, then they are assessed on their total income whether from French or foreign sources. Persons who are not tax resident in France are only taxed on their income from French sources. This applies for income tax and wealth tax.

If you spend half a year in both the UK and France you may be classed as resident for tax purposes in both countries.

Advantages of completing your tax return in France :
1. Peace of mind
2. Benefit of reliefs available such as capital gains tax exemption for your main home when you sell
3. You are "legal" in France
4. Certain payments from UK can be made gross e.g. pension payments.

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