split residency UK + France - tax implications?

[Blackpuddin]

Say someone wanted to have a residence in the UK and another one in France. If that person is working as a director of their own UK company, are there any limits on how long they could live in France each year, while still being taxed in the UK? Is the answer as simple as 'less than 6 months'?
Don't suppose it will be as easy as that. Hoping that the collected brains of PH can answer this one.

[NorthDave]

I'm not an accountant but I was never advised on a length of time. The French just wanted to know I was paying tax in the UK.

I dont make any money in France though. That would open up french tax requirements I think.

[Blackpuddin]

Yep, in this case all the money would be made in the UK.

[rdjohn]

The magic number is 183 days, where you sleep the night is the qualifying mark of any day, so if you are there for long periods, you will need to keep a diary.

As said before if you have no financial gain there, then the tax authorities are unlikely to have any interest in you.

Never ever become french resident for tax, they would suck the spirit out of you. Your worldwide (UK) assets then becomes liable for French wealth tax.

When, or if, you sell your property you will be taxed on any capital gain. If you rent it out you will be taxed. Your neighbours are all required to pay tax and social charges and so may feel inclined to inform the authorities if you are clearly flouting the rules.

That said life in France is great, particularly if you like great food and wine and speak some French to be sociable.

Good luck

[Blackpuddin]

Thanks very much Rodger, that's great information. I've seen a thread elsewhere on PH in which guys who have gone out to work in France seem to be regretting it because of what appear to be quite oppressive tax and bureaucratic systems. I'd certainly want to be retaining my British status and to be taxed in the UK. From what you say it sounds like it wouldn't be worth the hassle of renting out any French property we might buy. Shame that such a beautiful country should be such a difficult day to day living proposition.

[rdjohn]

Although we also live in the UK and Spain, we are French resident for tax purposes and do have a small business renting holiday homes.

There might be 10 days a year when we have to suffer French administration, so the good days far exceed the bad. The other thread shows the high level of disdain that exists for small businesses, so the enterprise culture that exists in the UK is non-existent there.

France is a fabulous place for holidays and retirement. Neighbours are friendly but you do have to make a big effort with their language - they are intensely proud of their culture. Food and wine is far superior to what you can get in the UK, at similar prices.

Housing is relatively cheap, but generally everything does seem to be more expensive - it is a big country for deliveries and everyone is obliged to pay high social charges and tax.