How to save £2000?

You may now be planning your 2025 French tax return and maybe your 2025/26 UK tax return. It is important to get them right. I talked earlier in my blog about residence and why it matters for tax. Instead of tax "mumbo jumbo" some numbers may be easier…

Consider married couple A and B who are tax residents of France [ex UK}. A has a UK state pension (£12k), an S1 form and £12k net income from UK property rental. B has no income.

• Wrong approach: If A & B declare all income in the UK and then declare it all in France as foreign income, in total they pay ~£3000 tax/social charges (a little less if B transfers their UK marriage allowance).
• Right approach: If A declares the rental income in the UK and A & B declare the state pension in France and the rental as foreign income, with the S1 they pay about £900 total tax/social charges. So ~£2000 less – for doing it correctly vs incorrectly!
• If you think you fit with "A&B" worth asking for some help – you can still change your tax return for 2024/25 - and try applying for relief for earlier years too.