France UK tax treaty: how income, pensions and inheritance are taxed between France and the UK

Maître Alexis Germe Cross-border tax International taxation

You live in England and let a flat in Bordeaux. Or you have retired to the Dordogne and still receive a State Pension, a workplace pension and perhaps rent from your former home in the UK. Either way, the question is the same: which country taxes what, and how do you avoid paying twice? The answer starts with the France UK tax treaty, in fact two treaties: the 2008 convention on income and capital gains^[1], and the 1963 convention on inheritance^[14]. Here is what they say, and where they leave gaps.

What is the France UK tax treaty?

The UK France double taxation convention on income and capital gains was signed in London on 19 June 2008 and entered into force on 18 December 2009^[3]. It has applied in France since 1 January 2010 and, in the UK, since 6 April 2010 for Income Tax and Capital Gains Tax^[3]. The treaty was signed in English and French, both texts being equally authoritative^[1][2]: you can read the full English text on GOV.UK and the French version on the French tax authority’s website^[5].

It has since been modified by the OECD Multilateral Instrument, which adds a general anti-abuse rule^[4]. Inheritance falls under a separate and much older text: the convention of 21 June 1963, discussed below^[14][16].

Test your knowledge

3 questions to see whether this article can help you

1. A UK State Pension paid to a British retiree living in France is taxable:

Only in the UK Only in France In both countries, with no relief

2. Rent from a flat in Bordeaux received by a UK resident is taxable:

Only in the UK In France, with the UK giving credit for the French tax Nowhere, as long as the rent stays in a French account

3. Which text deals with inheritance between France and the UK?

The 2008 convention A separate convention signed in 1963 No treaty covers inheritance

Am I tax resident in France or the UK?

Everything starts with residence, and each country applies its own test. In the UK, the Statutory Residence Test applies: you are, for instance, automatically UK resident if you spend 183 days or more in the UK in the tax year, which runs from 6 April to 5 April^[7]. In France, article 4 B of the French tax code treats you as resident if your home or main place of stay, your main professional activity or the centre of your economic interests is in France^[6]. These criteria are alternative: meeting just one is enough.

Resident in France or in the UK? Each country’s test

France (article 4 B of the tax code)

Home (foyer) or main place of stay
Main professional activity
Centre of economic interests

United Kingdom (Statutory Residence Test)

183 days or more in the UK in the tax year
Other automatic UK and overseas tests
Sufficient ties test (family, work, accommodation)

If both countries treat you as resident, Article 4 of the 2008 treaty decides.

Where both countries claim you, Article 4(2) of the treaty applies a series of tie-breaker tests, in a fixed order: permanent home, centre of vital interests, habitual abode and, finally, nationality^[1]. If you are a national of both countries, or of neither, the two tax authorities must settle the question by mutual agreement^[1].

Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:
(a) he shall be deemed to be a resident only of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests); […]
UK-France Double Taxation Convention of 19 June 2008, Article 4, paragraph 2 (authentic English text) ^[1]

How is French rental income taxed for UK residents?

Income from immovable property may be taxed in the country where the property is situated (Article 6), and this expressly covers the letting of the property^[1]. A UK resident who lets a flat in Bordeaux or a gîte in Brittany therefore remains taxable in France on that rent.

1. Income derived from immovable property (including income from agriculture or forestry) situated in a Contracting State may be taxed in that State.
[…] 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
UK-France Double Taxation Convention of 19 June 2008, Article 6, paragraphs 1 and 3 (authentic English text) ^[1]

French income tax on rent for non-residents

In France, the rent is declared each year as a non-resident taxpayer. Under article 197 A of the French tax code, the tax cannot be lower than 20% of net taxable income up to the upper limit of the second band of the income tax scale, and 30% above it, unless you show that your average French rate on your worldwide income would be lower^[8].

[…] the tax may not, in that case, be lower than an amount calculated by applying a rate of 20% to the portion of net taxable income that is less than or equal to the upper limit of the second band of the income tax scale, and a rate of 30% to the portion above that limit; […] however, where the taxpayer shows that the rate of French tax on all of his income of French or foreign source would be lower than these minimum rates, that rate applies to his income of French source.
Article 197 A of the French tax code (Code général des impôts), current version, unofficial translation ^[8]

French social charges: the 7.5% solidarity levy

French social charges also apply to the property income and property gains of non-residents. However, the French tax authority confirms that, although the UK left the European Union, people affiliated to the UK social security system continue to be exempt from CSG and CRDS: they pay only the solidarity levy of 7.5% on that income^[9]. The exemption must be claimed in your French return^[9].

UK tax on French rental income

As a UK resident, you normally pay UK tax on your worldwide income, including rent from overseas property^[7]. The French rent is therefore reported in your Self Assessment return, and the UK gives a credit for the French tax under Article 24(1) of the treaty^[1][11]. The credit cannot exceed the UK tax on the same income^[11]. One detail matters: HMRC accepts French income tax and the solidarity levy for credit, but not CSG or CRDS^[10].

How are British pensions taxed in France?

Is the UK State Pension taxable in France?

Pensions paid in consideration of past employment are taxable only in the country of residence (Article 18)^[1]. A British retiree who is resident in France is therefore taxed in France on workplace and personal pensions. HMRC applies the same rule to the UK State Pension: as a resident of France, you can apply to have it exempted from UK Income Tax using form France-Individual, certified by your French tax office^[12].

Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid in consideration of past employment to a resident of a Contracting State shall be taxable only in that State.
UK-France Double Taxation Convention of 19 June 2008, Article 18 (authentic English text) ^[1]

Are UK government pensions taxed in France?

Pensions paid by a State or a local authority for services rendered to it remain taxable only in the paying State (Article 19(2))^[1]. A pension paid by the UK for service to the UK government or a local authority therefore stays taxable in the UK, unless you are a resident and national of France without also being a UK national^[1][12]. France does not ignore that pension, however: it takes it into account to calculate your French tax, then grants a tax credit equal to the French tax on it (Article 24(3))^[1]. Some UK war and armed forces disability pensions are exempt from French tax as long as they are exempt in the UK (Article 19(4))^[1].

How are dividends and capital gains taxed under the France UK tax treaty?

Investment income follows specific rules:

dividends: taxable in the country of residence, but the paying company’s country may levy up to 15% of the gross dividend (Article 11)^[1];
interest and royalties: taxable only in the country of residence of the beneficial owner (Articles 12 and 13)^[1].

For capital gains (Article 14), gains on immovable property may be taxed in the country where it is situated, and the same applies to unlisted shares deriving the greater part of their value from such property, such as shares in a French property company^[1]. Other gains, on listed shares for example, are taxable only in the seller’s country of residence^[1]. A UK resident selling a French holiday home is therefore taxed in France, at the proportional rate of 19% under article 244 bis A of the French tax code^[13], plus the solidarity levy if affiliated to UK social security^[9], and declares the gain in the UK with credit relief^[11].

If you have just left the UK, note Article 14(6): a country keeps the right to tax gains made by a person who was resident there at any time during the previous six fiscal years, and must then itself relieve the double taxation (Article 24(4))^[1].

France UK tax treaty: who taxes what?

Salaries	Country where the work is done (183-day rule for short assignments)^[1]
Private pensions and State Pension	Country of residence only
Government service pensions	Paying country, except nationality exception
Rent and property gains	Country where the property is situated, credit in the country of residence
Dividends	Country of residence, source tax capped at 15%^[1]
Interest	Country of residence only^[1]
Other capital gains	Seller’s country of residence (six-year clause)
Inheritance	Separate 1963 convention: domicile and location of assets

How does the treaty eliminate double taxation?

Article 24 sets out a different method for each country^[1]. For a UK resident, French tax paid in accordance with the treaty is allowed as a credit against the UK tax computed on the same income or gains^[1]. For a French resident, income taxable in the UK is included in the calculation of French tax, but gives rise to a tax credit^[1]:

for most income, such as UK rent or government pensions, the credit is equal to the French tax attributable to that income, which in practice neutralises French tax on it while increasing the rate applied to the rest^[1];
for dividends, certain capital gains, directors’ fees and a few other categories, the credit is equal to the UK tax actually paid, capped at the corresponding French tax^[1].

Our guide to the general methods of double tax relief explains how these credits work across France’s treaties.

If you consider that you are being taxed contrary to the treaty, you can present your case to the competent authority of either country, within three years from the first notification of the disputed taxation or within six years from the end of the tax year concerned (Article 26, as modified by the Multilateral Instrument)^[4].

Is there a France UK inheritance tax treaty?

Yes. The convention signed in Paris on 21 June 1963 came into force on 30 June 1964 and applies to the estates of people who died on or after 21 June 1963^[14][16]. Originally drafted for UK estate duty, it now applies to UK Inheritance Tax and to French duty on death, but not to lifetime gifts^[17]. Its English text is published on legislation.gov.uk^[15].

Domicile under the 1963 convention

The convention works by reference to the deceased’s domicile, assessed under each country’s own law, with tie-breaker rules similar to those of the income tax treaty if both countries claim the deceased^[15]. On the UK side, this point deserves attention: since 6 April 2025, UK Inheritance Tax is based on long-term UK residence (at least 10 of the previous 20 tax years) rather than domicile, but pre-1975 conventions such as the French one continue to operate by reference to common law domicile^[17][18]. A Briton settled in France for decades may still be UK-domiciled under common law, in which case the tie-breaker rules decide.

Which country taxes which assets?

The convention contains its own rules on where each asset is deemed to be situated (Article IV)^[15], including:

land and buildings: where they are located; shares in a French société civile immobilière follow the location of the property^[15];
company shares: where the company was incorporated^[15];
debts, government securities and sums payable under insurance policies: where the deceased was domiciled^[15].

Where the deceased was domiciled in Great Britain, the convention provides that France may not tax property not situated in France (Article V(2))^[15]. This matters because French domestic law, in article 750 ter of the French tax code, can otherwise tax foreign assets received by an heir resident in France for at least six of the previous ten years^[19]. Assets situated outside France are therefore outside French tax, even when received by such an heir. The location rules of Article IV, however, apply only to an asset taxed in both countries, or taxed in one and left untaxed in the other by a specific exemption (Article III(2))^[15]. For an asset the UK does not tax at all, the French tax authorities apply French law instead^[21]. Since 6 April 2025, this covers assets situated outside the UK when the deceased was not a long-term UK resident, which UK law treats as excluded property^[22]: accounts with French banks and bonds issued by French companies or the French State, which Article IV would place in Great Britain, then count as French assets and are taxable in France^[19][21]. Conversely, where the deceased was domiciled in France, the UK does not tax property situated outside Great Britain, unless it passes under a disposition or devolution governed by the law of part of Great Britain (Article V(1))^[15].

Where a person was at the time of his death domiciled in some part of Great Britain duty shall not be imposed in France on any property not situated in France; and in determining the amount or rate of duty payable on any property which is chargeable in France, any property not situated in France shall be disregarded.
UK-France Estate Duty Convention of 21 June 1963, Article V, paragraph 2 (authentic English text) ^[15]

When the country of domicile taxes an asset situated in the other country, it grants a credit for the duty paid there, within the limit of its own duty on that asset (Article VI)^[15]. Any claim for a credit or refund must be made within five years of the death (Article VII)^[15]. French rates and allowances, which differ sharply from UK rules, are covered in our guide to French inheritance tax.

Retiring to France from the UK: how the tax treaty applies

If you are retiring to France, remember that the treaty does not cover the French tax on real estate wealth (IFI), which is outside its scope^[1]: under article 964 of the French tax code, it applies to net taxable real estate assets above 1.3 million euros on 1 January^[20]. Nor does it settle every question, such as the French treatment of UK pension lump sums or trusts.

Moving from the UK to France: the tax steps

ResidenceFix and document the date you become resident in France
UK pensionsFile form France-Individual to stop UK tax on pensions taxable in France
French returnDeclare your worldwide income in France from your first year
UK propertyCheck how UK rent and gains will be taxed and credited
Estate planningReview your domicile, your will and the 1963 convention

Getting advice on cross-border tax between France and the UK

The two France-UK conventions must always be read together with two very different domestic systems. A French tax lawyer for British clients can help you confirm your residence, organise your French-source income and plan the transmission of your assets.

Do you own property in France, receive UK pensions in France, or plan to move between the two countries? Alexis Germe, tax lawyer at the Bordeaux bar, reviews your situation and coordinates with your UK advisers so that your filings in both countries remain consistent. Arrange a Franco-British review of your situation, listing the income and assets you hold on each side of the Channel.

Sources and reference texts

Frequently asked questions about the France UK tax treaty

Which tax treaty applies between France and the UK?

For income and capital gains, the convention signed in London on 19 June 2008, in force since 18 December 2009 and modified by the Multilateral Instrument. For inheritance, the convention signed in Paris on 21 June 1963, which covers taxes due on death but not lifetime gifts.

Is my UK pension taxed in France?

Private pensions and the UK State Pension are taxable only in your country of residence, so in France if you live there. Pensions for UK government or local authority service remain taxable in the UK, unless you are a French national without UK nationality, but France takes them into account to set your rate.

I live in the UK and let a property in France: where am I taxed?

France taxes the rent as the country where the property is situated, with a minimum rate of 20% or 30% for non-residents unless your average rate is lower. If you are affiliated to UK social security, you pay the 7.5% solidarity levy rather than CSG and CRDS. The UK also taxes the rent and gives a credit for the French income tax and solidarity levy.

Do I pay tax in France when I sell my French holiday home?

Yes. The treaty lets France tax gains on property situated in France. A non-resident pays French tax at 19% on the gain, after holding-period relief, under article 244 bis A of the French tax code, plus social charges or the solidarity levy, and reports the gain in the UK with credit relief.

Does the France UK treaty prevent double inheritance tax?

Largely, through the 1963 convention: it allocates assets according to the deceased’s domicile and the location of each asset, and the country of domicile grants a credit for duty paid in the other. Claims must be made within five years of death. Lifetime gifts are not covered.