Brexit, tax and Britons in France

It will not affect it as the UK-France double tax treaty has no relation to the EU.

The EU single market’s four freedoms that give EU citizens the right to live in and operate a business in France may be significantly changed by Brexit, depending on the outcome of the negotiations – but not their tax position.

The first element to consider is the right to reside in France which may have ‘before and after’ rules. This means that conditions and rights that are currently in place for Britons living in France before Brexit (and possibly up to the end of a transition period) may continue while new rules will apply to those who move over afterwards.

Neither side in the negotiations wants a situation where hundreds of thousands of settled expats find their rights suddenly revoked and with retrospective effect, obliging them to sell up and return to their original country. If the deal currently on the table goes ahead, that should largely be avoided, although there are concerns that some issues are not entirely ironed out (such as potential complications over recognition of UK work qualifications and, especially, continuing EU free movement rights in countries other than that of residence, an issue likely to affect those whose businesses rely on this).

With regards to taxing rights however, Brexit does not call into question other treaties that the UK has with its EU partners. This means that the current double taxation agreement between France and the UK will continue, as it does not form part of the EU treaty. Therefore the current rules for the elimination of double taxation for businesses and individuals will continue unchanged.

This question was answered by Olaf Muscat Baron who is a Fellow of the Chartered Association of Accountants UK, a French expert comptable and an International tax advisor. He is the principal accountant of Fiscaly, an accountancy firm based in the Dordogne.

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