It’s worse I think. As a Person with Significant Control (e.g., a Director) of a UK business living in France (I think) but definitely as an Owner of a UK business, profits of that business are apparently taxable in France whether paid out as dividends or not.
I read this a while back, wondered is this really true and thanked heaven mine is dormant (but its existence has been declared in France).
The interesting thing would be if the business made a loss, would this then be able to be offset against French tax in any way?
And is any corporate tax paid in France deductible from UK corporate profits or otherwise offsettable in the company’s accounts as an expense?
The way it seems to work , if they decide significant control from France , they can ask(not force) HMRC to send back your paid taxes to them but they can/will also fine you at 80% of that value -double taxation by the back door + if you sold goods or services at 0% to France or Europe they can/will also reclassify that as a vatsale and charge you that 80% without the possibility of you invoicing /recovering that sum …. pretty nightmarish overall - on the other side a UK HMRC specialist severely doubted that HMRC would impose those fines on behalf of the French Fisc
I received wrong advice no need to declare etc ,today I am going through a nightmare £100’s K….. with the fisc - you could be considered to be running your biz from France if yes -big problems if you are making a profit , even if completely outside of France !!! ie goods bought in say Germany imported to UK or even UK to UK ….. its about where you are not the business