After living in France for 2 1/2 years I have relocated back to the UK in June 2021 and have today cashed in 15,000 euros from my “assurance vie” in France for my living expenses here.
As I plan to stay in the UK permanently I guess that I’ve automatically become resident in the UK since arrival and will need to report this amount as income on my tax return to HMRC ? This money was tax free in France except for the 7.5% “prélèvement forfaitaire libératoire” for the social security taxes. I wonder however if there any special tax treatment applying to this type of income in the UK ?
Any thoughts or recommendations would be highly appreciated as it’s a nightmare to juggle with 2 different tax jurisdictions ; as you must well know !
Many thanks and warm regards
If you moved back in June presumably ou will be doing a split year treatment for France and UK taxes.
I believe you will have to pay tax on any capital gains you made when you sold. And I think if you were in France for under 6 years this will be to pay in the UK - but I am not sure.
This is for long term rich residents! But there might be similar for others.