A BRITISH CITIZEN
Since January 1, 2021, the United Kingdom has been a third country to the European Union. EU law has ceased to apply in the UK.
European Union law no longer applies in the United Kingdom since December 31 at midnight, including in tax matters. Barring exceptions, the United Kingdom is no longer assimilated to a Member State of the European Union or of the European Economic Area with regard to French tax legislation.
You are concerned if you hold UK securities in your equity savings plan (PEA); if you are eligible for the exit tax system by moving your domicile to the United Kingdom; if you wish to make donations to NPOs; if you own real estate assets in the United Kingdom.
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FREQUENTLY ASKED QUESTIONS
Since 1 January 2021, British residents no longer benefit from the exemption from general social contribution (CSG) and contribution for the repayment of social debt (CRDS) based on income from assets insofar as the United Kingdom is no longer subject to the provisions of European Regulation (EC) No 883/2004 on the coordination of social security systems.
Consequently, income from assets is subject to social security contributions at the overall rate of 17.2%.
Donations and payments to UK-based non-profit organizations (NPOs) are no longer eligible for the donation tax reduction or property wealth tax reduction.
For the record, the only foreign bodies eligible are those headquartered in a Member State of the European Union (EU) or in another State taking part to the European Economic Area (EEA) agreement which has concluded an administrative assistance convention with France to fight against tax fraud and evasion.
The so-called exit tax system provides that the transfer of tax domicile outside France entails the immediate taxation of income tax and social security contributions of unrealized capital gains recorded on social rights, securities, securities or rights, receivables arising from a price supplement clause and tax-deferred capital gains (article 167 bis of the general tax code).
A suspension of payment is automatically granted, for departures prior to January 1, 2019, when the taxpayer transfers his tax domicile outside France to a Member State of the European Union (EU) or to another State party to the agreement on the European Economic Area (EEA) having concluded with France an administrative assistance agreement with a view to combating tax fraud and tax evasion and a mutual assistance agreement for collection. In other cases, the stay is granted at the express request of the taxpayer and subject to the provision of guarantees.
In addition, for departures occurring as of January 1, 2019, the benefit of the suspension of payment operates automatically, without the provision of guarantees, for departures to a Member State of the European Union or in any State or territory having concluded an administrative assistance agreement with France with a view to combating tax fraud and tax evasion, as well as a mutual assistance agreement for recovery.
As the United Kingdom has legal instruments for assistance in recovery and the fight against tax evasion similar to those existing between EU Member States, British operators are exempted from appointing a tax representative, the suspension of payment automatic without the provision of guarantees continues to apply.
All real estate capital gains made by a resident of France are taken into account for income tax and social security contributions, whether the property sold is located in France or in the United Kingdom. However, in this second case, under the Franco-British tax treaty of June 19, 2008, this taxpayer benefits from a tax credit equal to the British tax paid on the same gain and chargeable to the corresponding French tax. . In the event that the real estate capital gain from British sources is exempt, no tax credit is granted in France under this Franco-British tax treaty.
However, the exemption benefiting from the transfer of a main residence is likely to apply when the property has constituted the main residence occupied by the transferor until it is put up for sale, when it has remained free of any occupation until the sale and that the sale takes place within a normal period (see §190 of BOI-RFPI-PVI-10-40-10 for the assessment of this criterion).
Under the plan provided by articles 244 bis A and 244 bis B of the GTC, the United Kingdom no longer belonging to the European Union or the European Economic Area, the transferor resident or having its headquarters in the United Kingdom have to appoint a tax representative.
As a reminder, however, individuals with their tax residence in the United Kingdom are exempt from appointing an accredited representative when they sell a property located in France :
- whose sale price does not exceed 150,000 euros, or
- when they benefit from the achieved capital gain of a total tax exemption, in relation to both income tax and social levies, taking into account the length of time the property is held, in accordance with the provisions of I of Article 150 VC of the GTC and 2 of the VI of Article L. 136-7 of the Social Security Code (SSC), or
- when they benefit from the capital gains exemption provided in 1 of Article 244 bis A of GTC for the sale of the former main residence (see BOI, RFPI-PVINR-30-20, 170-225).
To be eligible for the equity savings plan (PEA) and the PEA for small and medium-sized enterprises (PEA-PME), the securities must be issued by companies having their registered office in a Member State of the European Union ( EU) or in another State party to the European Economic Area (EEA) that has concluded a tax treaty with France that includes an administrative assistance clause to combat tax fraud or tax evasion or an administrative assistance in the fight against fraud and tax evasion (4° of I of article L. 221-31 of the monetary and financial code and 5 of article L.221-32-2 of the same code) .
This condition relating to the registered office of the company issuing the securities is constantly assessed. Consequently, securities issued by British companies are no longer eligible for PEA and PEA-PME.
The holding in the PEA or in the PEA-PME of such securities therefore constitutes a breach of the rules of operation of the plan, leading in principle to its closure (article 1765 of the general tax code).
However, Ordinance No. 2020-1595 of December 16, 2020 and its implementing decree of December 22, 2020 organize a tolerance period of 9 months from January 1, 2021 during which these securities remain eligible for the PEA-PME in order to allow the time necessary for their regularization (transfer or withdrawal of these securities from the plan).
If I am a resident of the United Kingdom, the taxation conditions of my PEA in the event of withdrawal, redemption or closure remain unchanged. Thus the dividends received on the plan are not subject to the withholding tax provided for in 2 of article 119 bis of the CGI at the rate of 12.8% except in the specific case of dividends paid by unlisted French companies.
According to the system provided for by articles 244 bis A and 244 bis B of the CGI, the United Kingdom no longer belonging to the European Union or to the European Economic Area, the assignor domiciled or having its registered office in the United Kingdom must appoint a tax representative.
However, it is recalled that natural persons having their tax domicile in the United Kingdom are exempt from appointing an accredited representative when they sell a building located in France:
- whose transfer price does not exceed 150,000 euros, or
- benefiting, on the basis of the realized capital gain, from total tax exemption, with regard to both income tax and social security contributions, taking into account the duration of ownership of the property, pursuant to the provisions of I of Article 150 VC of the CGI and 2 of VI of Article L.136-7 of the Social Security Code (CSS), or
- benefiting from the capital gain exemption provided for in 1 of I of article 244 bis A of the CGI for the sale of the former principal residence (see BOI, RFPI-PVINR-30-20, n°170 to 225).
With Brexit, customs formalities have to be completed every time you trade with the UK.
The new Vehicle Registration System (VRS) requires you to immediately register your vehicle or register it with a temporary number plate if your registration record is not complete.
Even if it is a second-hand vehicle, you have to carry out customs procedures and pay duties and taxes on its value on the day of entry into the EU. This value can be the one mentioned on the invoice or the value that served as a transactional basis. If it is not a purchase, the tax is based on the residual value that is generally indicated in the « l’ARGUS DE L’AUTOMOBILE ».
At the end of the formalities, customs give you a 846 A certificate for the registration of your vehicle in a normal series.
You can find useful information on the Customs website, via the following links:
All procedures are detailed, including those to be carried out with other administrations.