what happens if .....

[willowtreeblues]

Can someone give me some advice please.

I work in the UK as a special needs teaching assistant. My partner works abroad in Kazahstan. My partner returns home every 6 weeks and stays for 2weeks ie: he pays no tax in England. We have 3 children.

Our plan is to move to the South of France within the next two years to be closer to my family.

What could  be the permissible out come of this situation if we moved to France?

[Will]

The first and most important question is are you married? (you refer to 'partner' rather than 'husband' 'wife' or 'spouse'). Do you both intend to carry on working when living in France, and would this work be France based? Are you and your partner both EU citizens?

Also, are the three children all from your current relationship? And you refer to 'your family' - can you be a little more specific about the relationship.

Sorry if these questions seem personal, but the first have a considerable bearing on the general taxation and social security situation and the others must be borne in mind regarding things like French succession law and inheritance tax.

[willowtreeblues]

Hi Will,

Thanks for your reply.

We are not married living together for 16yrs, i would like to work if possible in France, my partner would carry on working in Kazahstan he is a project manager in the gas and oil business. We are both EU citizens and all children are from our relationship.

The family that i relate to consist of my mother english living in France for the past 22yrs married to my step-father who's french. My brother  who has been in France from the age of 5yrs and another brother born in France ie step brother. At the age of 25yr (now 43yrs) my step father adopted me and i have taken his name. This was for legal reasons ie: inheritance. All documents present and correct. Now my parents and brothers are willing to help and advise but i don't just wont to leave it all to them and my step father can get a bit flustered these days.

[Will]

As you are not married you will be treated separately for tax and social security purposes. If you are fortunate enough to get a job in France, or if you become self-employed, you will automatically enter the social security system, and will have to make a tax return. If you do not work you will probably be able to have an E106 form from Britain which will give you a period of health cover in France - after that you will need private assurance until you have been in France for five years or reach UK state retirement age. As they are your own children they can be included as dependants.

Your partner will probably be able to carry on as at present - there is a small, but very unlikely, chance that the French tax authorities may decide he qualifies as French resident (more likely if you do anything to formalise your relationship through a PACS agreement) which means that his income has to be declared in France. However, if he has already paid any tax on it in any other country, particularly one which has a double taxation agreement with France, that should be taken into account - otherwise he may have to pay French tax. (France does not just operate a 183-day residence qualification - you can be deemed resident if your main home or your family/dependants are in France).

Because you are unmarried there could be serious inheritance issues,  but it sounds as if your family who already live in France are well aware of the implications of French succession law and inheritance tax and have taken appropriate steps. You will probably have to take proper legal advice so that you can weigh up the advantages or disadvatages of a PACS (or even marriage), and ensure the house is bought in the most effective way - formalising your relationship will help with the inheritance problems but could leave you open to considerably larger annual tax bills during your lifetimes.