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Domiciled in France?

Posted by lob-189383 - Created: 14 years ago
0 0

had this advice from my accountant - does it sound about right?



You queried your domicile position now that you are a French carte de
sejour holder and a French tax payer.  Domicile is a complex area based
on general law rather than being a purely tax law issue.  The general
rule is that you are domiciled in the country where you have your
permanent "home" and this is distinct from nationality or residence.

Your domicile starts as that of your father when you are born.  In your
case this is the UK.  This is your domicile of origin.  As your
domicile did not change while you were a minor your domicile of origin will
remain your domicile position until you acquire a domicile of choice.

To acquire a domicile of choice you need to leave your original country
of domicile and settle in another country.  You need to be able to
provide evidence that you intend to live in the new country permanently or
indefinitely (intention to live in the new country for a long time is
not enough).  It is also necessary to sever as many ties with your
country of origin as possible.  The classic example that is used to
illustrate this point is that you should not have reserved a burial plot in
your country of origin! 

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2 replies (Showing replies: 1 to 2)

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Posted by MikeP-180526 - 14 years ago

Following on from the above, my question is what happens if you are a 'person immoral'.  No that's a silly comment!

Serious question ....

Many people make great efforts to lose UK domicile,  a lengthy and difficult process.  It seems that the main motivation for this is to eliminate liability for UK IHT (40% on all estate value above a threshold which I believe is currently GBP 278,000). 

However, in losing UK domicile,  you logically assume another one,  in the case of the current discussion, French.  As the French fiscus presumably also squeezes blood out of stones,  is there a real advantage in losing UK domicile?

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Posted by legend_in_my_lunchtime-182603 - 14 years ago

this sounds pretty much chapter and verse on the subject of domicile in as much as it has become quite a preoccupation for British expatriates.  Therefore the definition is totally Brit-centric and unlikely to affect anything that happens in France, although it may well affect affairs left to be resolved in Britain.  Despite the waiver that the interest is of general law rather than tax law, the main use is in tax matters (either for income tax or in many cases, for succession planning and reduction of inheritance tax)

France has a concept of "domicile fiscale" which is where you as a "person moral" are considered to be "imposable" - this is simply where you live most of the time rather than any other info like your nationality, your home country's arbitrary interpretation of your domicile, where you receive your bank statements, etc.