How is my tax residence determined?

Individuals

If you spend more than 183 days a year in the U. K. you are deemed to be resident in the U. K. for Tax purposes or if you average 90 days or more over a four year period - however the rules are not as clear cut as everyone would like.

In general however any income generated in the U. K. is taxed in the U. K. so even if you now live in France if you have rental income, investment income, salary or pension income you will still need to deal with HMRC (the tax office).You can apply to HMRC to be paid gross if you live overseas Companies

Companies are tax resident in the country in which they are registered

Definitions

Resident - either living primarily in a country, having your main financial interests in a country for tax purposes

Domicile - by default the country that you were born in but this can be changed by formally re registeringOrdinarily resident - the country or countries that you live in (so you can be ordinarily resident in the U. K. and France at the same time)If you have concerns regarding your Tax residency please contact us for individual advice which may be free in the first instance

Disclaimer

The information above is a brief overview of the situation relating to Tax residence as at Spring 2018.

U. K. law and French law are based under very different principals (in the U K case law is the most important so if similar circumstances to yours have been ruled on in the past that will take precedence over the core legislation whereas in France they always refer back to the statutes themselves) so in the event of a dispute establishing tax residence can be problematical.