There is a list of current double taxation agreements on GOV.UK. You will probably need to seek professional advice if you are in a double taxation situation. We`ll tell you how to find an advisor on our “Get help” page. Finally, some countries, such as Brazil, do not have a double taxation agreement with the United Kingdom. If this is the case, you can still apply for unilateral tax breaks for the foreign tax you pay. This means that migrants from the UK may have to take into account two or three tax laws: UK tax legislation; The other country`s tax laws; Double taxation agreement between the UK and the other country. For example, a person who resides in the United Kingdom but has rental income from a property in another country will likely have to pay taxes on rental income, both in the United Kingdom and in that other country. This is a common situation for migrants who have come to work in Britain to find themselves. However, you should keep in mind that, in practice, the transfer base helps to avoid double taxation when you live in the UK and earn foreign income and profits abroad. Unfortunately, the new treaty avoids the double taxation of directors` fees, which are imposed at source in the case of French residents, through the “amount of tax paid in the United Kingdom” method, i.e. a real credit method.
This means that a French resident, who is the director of a British company, becomes taxable in France for fees collected through a tax credit equal to the tax paid in this regard in the United Kingdom. Since the tax rate on directors` fees is relatively low in the United Kingdom, royalties will, in practice, be fully taxable in France. The current contract provides for the most advantageous method, i.e. exemption in France with a method of degressiveness, and has been used as a tax planning tool for directors established in France in multinationals. Since December 2009, the UK and France have entered into a double taxation agreement, which means you can legally avoid being taxed for the same income in both countries – but you have to pay taxes somewhere. If you are not a British expatriate, make sure your country of origin has a tax agreement with France. If you come to the UK and have a UK income that is taxed in your home country, you usually have to pay UK taxes.