Eu Savings Directive

MJSW

nsc wrote:

So, EUSTD. What to do? Do I have the choice of paying tax in the UK or in France?

No, you don't have a choice. If you are non-resident for UK tax purposes, then you only pay UK tax on income arising in the UK. The Isle of Man interest is offshore and therefore doesn't need to be reported to the Inland Revenue because you are non-resident (although it would become taxable if you later returned to the UK).

However, it is likely to be taxable in France as that is where you are resident for tax purposes. As a French resident, you will be taxable in France on your worldwide income. So both the Isle of Man account, and your UK accounts will be taxable in France. If you've already paid some tax in the UK on the UK interest, then I'm sure France will have some sort of double tax relief so that you get some relief for the tax already paid in another country, but you'd need to check that with someone who knows more about French tax than I do!

Incidentally, have you you looked into receiving your UK interest gross? If your total UK income is less than the personal allowance, then you shouldn't be paying any UK tax at all. You still get the UK personal allowance, even though you are no longer resident there. Your wife should also get a full UK personal allowance, because she is an EU citizen.