Wealth & non-residents — France / United Kingdom axis
English

France–UK taxation: treaties, residence and cross-Channel flows

The tax axis between France and the United Kingdom combines two separate treaties, a recently overhauled British residence test and a major reform of the non-dom regime that took effect on 6 April 2025. The firm Bensaid Avocats, admitted to the Paris and Geneva Bars, structures and secures the cross-Channel flows of individuals, executives and international families.

Request a confidential first exchange Your obligations
Tax lawyers admitted to the Paris & Geneva Bars — offices in Paris, Geneva, Marseille, Cannes and Lisbon. UHNWI clients, family offices, executives and non-residents.
— In brief
Income/gains treaty
London, 19 June 2008 (in force since 2010), amended by the BEPS multilateral instrument
Succession treaty
Paris, 21 June 1963 — a separate instrument, does not cover gifts
Non-dom reform
Abolished on 6 April 2025, "4-year" FIG regime after 10 years of non-residence
French exit tax
€800,000 securities threshold, payment deferral recognised for the UK subject to conditions
UK non-resident property gain
19% tax + 7.5% solidarity levy (CSG-CRDS exemption maintained)
— 01

Two separate treaties, two logics not to be confused

The France–UK tax relationship rests on two separate instruments, which must be analysed distinctly. The treaty of 19 June 2008, signed in London and applicable since 1 January 2010, governs income tax and capital gains tax. It replaced the 1968 treaty and has since been amended by the OECD BEPS multilateral instrument (MLI). The succession treaty of 21 June 1963, which entered into force in 1964, remains in force and covers French inheritance duties and British Inheritance Tax.

The 2008 treaty sets the rules for allocating taxing rights: interest and royalties are taxable only in the beneficiary's State of residence; dividends are subject to a source-State withholding tax capped at 15%, it being specified that the United Kingdom in practice applies no withholding on outbound dividends. Real estate capital gains remain taxable in the State where the property is situated.

The 1963 treaty follows a logic based on the domicile of the deceased and the situation of the assets: a deceased person domiciled in France is taxed in the United Kingdom only on assets located across the Channel, and vice versa. A major point of vigilance: this treaty does not cover gifts, and the British notion of domicile differs from tax residence. The firm articulates these two instruments to avoid double taxation and estate-planning blind spots.

— 02

Issues and obligations

Tax residence: article 4 of the treaty and the Statutory Residence Test

Determining the State of residence is the prerequisite for any analysis. Article 4 of the 2008 treaty resolves cases of dual residence through a cascade of criteria: permanent home, centre of vital interests, habitual abode, nationality, then mutual agreement between administrations. On the British side, residence is governed by the Statutory Residence Test (SRT), introduced by the Finance Act 2013 and applicable since 6 April 2013. It reads in three successive layers. The Automatic Overseas Test establishes non-residence where presence in the United Kingdom remains, for example, below 16 days (resident in one of the three preceding years) or 46 days (non-resident in the three preceding years). The Automatic UK Test establishes residence from 183 days, or where the only home is situated in the United Kingdom. Failing that, the Sufficient Ties Test combines the number of days with the number of "ties" (family, accommodation, work, prior presence, country of dominant presence). This dual reading — treaty criteria and the British statutory test — is decisive for executives and families who split their time between Paris, London and, often, Geneva. A miscount of days or a misjudgement of the "ties" can shift residence and trigger unexpected worldwide taxation.

Leaving France and property disposals: exit tax and capital gains

A taxpayer domiciled in France for at least 6 of the 10 years preceding departure may be subject to the exit tax under article 167 bis of the CGI on latent capital gains on securities. The trigger threshold is set at €800,000 of total value of securities (this is a threshold, not an allowance: beyond it, taxation applies from the first euro). Towards the United Kingdom, now outside the European Union, the automatic payment deferral remains recognised thanks to the France–UK administrative-assistance and recovery treaties, subject to the annual list of eligible States applicable to the year of transfer. The tax is then relieved after 2 years of holding (5 years where the total value exceeds €2.57m). The sale of a property located in France by a UK resident falls under the non-resident regime: a 19% levy on the capital gain as tax (article 244 bis A of the CGI). Despite Brexit, UK residents retain the CSG-CRDS exemption and pay only the 7.5% solidarity levy instead of 17.2%, subject to three cumulative conditions: affiliation to the British social security system, status as a national or lawful resident of France, the UK or the EEA, and no affiliation to a compulsory French scheme. As the United Kingdom is outside the EU and EEA, the appointment of an accredited tax representative is in principle mandatory for these disposals, with an automatic exemption where the sale price does not exceed €150,000 or in the event of full exemption. The firm steers these transactions with the notaries and tax representatives, and where appropriate brings claims for refund of social levies wrongly paid (deadline: 31 December of the second year following payment).

The non-dom reform and the "4-year" FIG regime

The most structural change of recent years is the abolition of the British non-dom regime, based on the notion of domicile, as from 6 April 2025. The concept of domicile is removed from the income tax and CGT base in favour of a residence-based system, and the remittance basis disappears. The new FIG (Foreign Income and Gains) regime, known as the "4-year" regime, is aimed at persons becoming UK tax residents after at least 10 consecutive years of non-residence. During the first 4 years of residence in the United Kingdom, foreign-source income and gains are exempt from British tax, including when repatriated across the Channel, on an annual, source-by-source claim. Beyond 4 years, ordinary worldwide taxation applies. For a French person settling in the United Kingdom, this 4-year window can represent a genuine opportunity, provided it is carefully articulated with French taxation at source (real estate, dividends) and with the 2008 treaty. Conversely, a client structuring a return or a departure must anticipate the interaction between the SRT, the French exit tax and the FIG regime. The firm designs these sequences with full compliance in mind, coordinating its Paris and Geneva offices where Switzerland is added to the equation.

— 03

Lead counsel — Me Jonathan Bensaid

Me Jonathan Bensaid, founding partner, advises UHNWIs, family offices, executives and non-residents on international wealth taxation and cross-border compliance. The firm is admitted to the Paris & Geneva Bars.

  • France-UK taxation
  • France-United Kingdom tax treaty
  • exit tax
  • FIG non-dom regime
  • non-resident property capital gain
  • Statutory Residence Test
  • tax lawyer Paris Geneva
— Frequently asked questions

A combined reading, the only guarantee of compliance

Is there a single tax treaty between France and the United Kingdom?

No. Two separate instruments coexist: the treaty of 19 June 2008 for income tax and capital gains tax (amended by the BEPS multilateral instrument), and the treaty of 21 June 1963 for inheritance duties. The latter does not cover gifts, which is a blind spot to anticipate.

Does the British non-dom regime still exist in 2026?

No. The domicile-based non-dom regime was abolished on 6 April 2025. It is replaced by the residence-based "4-year" FIG regime, which exempts foreign income and gains during the first 4 years of residence, for persons who have been non-resident for at least 10 consecutive years.

Does a UK resident selling a property in France pay 17.2% in social levies?

No, in principle. Despite Brexit, UK residents retain the CSG-CRDS exemption and pay only the 7.5% solidarity levy, subject to three cumulative conditions (affiliation to British social security, national/lawful resident of France-UK-EEA, not affiliated to a French scheme). Britons who wrongly paid 17.2% can claim a refund.

Does leaving France for the United Kingdom trigger the exit tax?

It may trigger it if the taxpayer was domiciled in France for at least 6 of the 10 years preceding departure and holds more than €800,000 of securities. An automatic payment deferral nonetheless remains recognised towards the United Kingdom thanks to the assistance treaties, subject to the annual list of eligible States applicable to the year of transfer.

How many days can I spend in the United Kingdom without becoming a British tax resident?

It depends on the Statutory Residence Test. Non-residence is automatic below 16 days (if you were resident in one of the three preceding years) or 46 days (if you were non-resident). Residence is automatic from 183 days. Between these limits, the Sufficient Ties Test combines days and personal ties.

Cité par

Structuring your France–UK flows

Whether you are preparing to settle in the United Kingdom, a property disposal in France or a cross-Channel transfer, the firm Bensaid Avocats analyses your situation in light of the two treaties, the Statutory Residence Test and the FIG regime. Our Paris and Geneva offices coordinate the French, British and, where applicable, Swiss dimensions of your matter.

Request an audit See Jonathan Bensaid's profile

Content of an informative nature, up to date with the texts known as at the date of publication and subject to the finance act applicable to the year of the transfer or transaction. It does not constitute personalised advice. Every situation must be the subject of an individual analysis. Bensaid Avocats, Paris & Geneva Bars.