POINTS TO REMEMBER
In France you are taxed on a household, rather than on an individual basis. This means that if you are married or in a civil partnership, your tax liability is based on your combined income. French income tax rates are progressive up to 45%. In addition to income tax, social charges are levied on most types of income (8% on salaries, 7.4% on pension income and 15.5% on investment income for 2017).
UK government service pensions remain taxable in the UK and are not taxed in France, although you need to declare the income as it is taken into account when the rate of tax payable on your other French source income is calculated.
You also have to consider the tax implications on any other types of income such as investment income. It is important to note that what is tax-efficient in the UK (such as ISAs) is not tax-efficient if you become French resident.
Besides income tax you may be liable to wealth tax. This is an annual tax on the value of a household’s worldwide assets as at 1 January. You are liable if your taxable assets are above €1.3m. Rates range from 0% (for assets under €800,000) to 1.5% (for assets above €10,000,000). From 2018 this may be restricted to real estate assets.
Succession tax is the French equivalent of UK inheritance tax but works quite differently. Tax is not charged on your estate but paid by each beneficiary on the assets they inherit. Rates vary according to the relationship between the deceased and the beneficiary.