Keeping the Remittance Rule Alive: A Win for Both the UK and France
What the numbers say
- UK‑France trade in goods and services hit £103.4 billion in the last quarter of 2023—up 18.1 % from the same period last year.
- Only just over 150,000 French-born people live in England and Wales, and more than 10,000 high‑net‑worth French residents have left the UK since 2017.
- France, Italy, Spain and Portugal offer attractive tax frameworks that lure the super‑rich to Paris instead of London.
Why scrapping the remittance basis is a bad idea
- Without the remittance rule, expatriates will lose the special protection that lets them keep profits from overseas investments out of UK tax.
- Higher costs of doing business post‑Brexit, combined with a hard‑to‑beat visa process, already deter entrepreneurs from setting up in the UK.
- If the UK’s policy gets fancy—sorry, gets unfancy—French investors may look elsewhere, stalling FDI inflow and hurt the property market.
Back to the facts
The UK has no wealth tax, while France sticks to progressive income tax capped at 45 % for the highest earners. This makes the UK especially attractive to those who can keep international income outside the domestic tax net. Throwing away that advantage? Not the smartest move.
In short, a snip at the remittance rule may ruffle the diplomatic boat and give French business partners a reason to hop off the London train. Keep the rule, keep the money, keep the good vibes between the nations.
