Debra

Thanks Ron - but it was that post which confused me and which I quoted the bit about not using form 2042 from: Please note that you cannot use the 2042(s) form you may be sent, if you are declaring anything other than wages earned in France.

With you - I didn't know (or had forgotten - its a lot to read up on and then remember it all later!) you could do that, but if I had known (which I may have once!) then I would probably have discounted this method because wouldn't it mean that the survivor wouldn't be free to do with the property as they wished?  ie the survivor could continue to live on the property and presumably benefit from any business being run from it but couldn't for instance sell up and start a different business or move to live somewhere else?  Also, it coudn't be sold at all if the children were still minors - or things may be complicated where the children were still minors and another parent (ie the ex) may have some say in what happened to their property.  Everyone's situation IS different and in our case I wouldn't want to necessarily carry on with any business which may be set up on at least one of our properties whereas my husband probably would (depending on age and current ability).  Hence our arrangements for the survivor to buy the kids out, if they wanted to....

I understood you couldn't leave a usufruit to a spouse when there are children from a previous marriage as French inheritance law considers that children from a first marriage shouldn't have to wait for their inheritance until a spouse from a second marriage dies.  Also, the messages here seem to imply that there is a difference between how men and women's share is treated.  I understand that if the woman owns half of the property then her half goes to her heirs just as the man's half does - they can each leave their spouse only a specified portion of their immovable property (with usufruit if there are no children from a prior marriage) and the rest must go to the usual reserved heirs.  Money in the bank can be left where you like - the reserved heirs only come into it when you're talking 'immovable property'. If you buy en tontine when there are children from a previous marriage, then the children of the spouse who dies first can effectively be disinherited because the property is deemed to belong to the surviving spouse as if the first had never existed - so the children of the first to die are no longer reserved heirs.  This is why notaire's don't like doing this: the French don't like disinheriting heirs in the blood line.  However, even if the surviving spouse then leaves the property in their will to all the children from both previous marriages, this is not good because the children of the first to die are not blood relatives of the survivor and will therefore pay 60% inheritance tax on the inheritance with only a very small allowance.  Also, with en tontine it isn't good for the surviving spouse if the value of the property is more than a certain amount because he or she is treated as having inherited the whole property and therefore pays inheritance tax on the whole of the property value rather than on just half of it.  I'm a bit confused about this mention of buying usufruit and en tontine together but vaguely remember that there is something to do with 'gifts' that can be done - but don't the same disinheritance and tax situations still exist? I hope I haven't confused the issue!  Its best to get proper legal advice if you're not sure, obviously, but at the end of the day we decided that as we had three children between us (two mine, one hubby's) and we wanted them all to inherit equally and without being overburdened with inheritance taxes, we would buy in normal French way, in the proportions that would allow that to happen (ie a third to hubby and two thirds to me).  We've got life insurance in place that will allow the survivor to buy the kids out of their portion if it turns out that they want to do so.

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Whoopee - it just speeded up!  Is somebody listening and doing something about it out there??

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I would have thought it was pointless attending a history or geography class until she was fluent in French in any case.  A couple we met said their son did only maths and French until his French was up to scratch, when he then joined in with the other lessons.

You can have short term letting agreements of six months, much like in the UK, I understand - and that will be more secure from the landlord's point of view.

current UK threshold for IHT is £275000 and here is a useful site for the UK position: http://www.direct.gov.uk/MoneyTaxAndBenefits/Taxes/InheritanceTaxEstatesAndTrusts/InheritanceTaxArticles/fs/en?CONTENT_ID=4016736&chk=03jqr%2B and on the same site but specific to people moving abroad, not so specific to inheritance tax: http://www.direct.gov.uk/BritonsLivingAbroad/Money/MoneyArticles/fs/en?CONTENT_ID=4000107&chk=yThhza

Hi Keith, I've been reading through a French taxation document someone posted on here a while ago but its really complicated.  I'm not quite sure whether you would still pay inheritance tax and transfer duties in France even though the property is in the UK (it sounds like it - and the threshold is lower in France) and if so, this seems to depend on whether you've been tax resident in France for more than six years in the previous ten years.  If you do a google search on 'inheritance UK abroad' it brings up lots of information sites.  I think you really need to speak to a tax expert that is knowledgeable about both UK and French tax regimes, but then you probably realise this.  Hopefully someone on here will have been in the same situation, as it must be common, and will have their experience to relate. The property would certainly be added to your overall wealth so it might affect whether you now pay wealth tax or not.  You should also consider whether you will be liable to income tax in either country on the nominal rental value of the property. Edit: oops - cross posted with Hegs since I took ages to update this, going off to do an internet search in the middle of it!  However, Hegs, I DID find out that it comes under the double taxation agreement, so any tax paid in France will be offset against any due in the UK, if any is due. 

I'm not sure what difference being married makes unless its an inheritance issue.  Unless you bought en tontine, in which case you really need to see a solicitor as apparently its very difficult to force anyone to sell in this case as noone actually owns the property outright until the partner dies.  However, assuming you've agreed to sell up, doesn't splitting the proceeds depend on the split you bought it with in the first place?  As far as changing your 'married' status goes, doesn't this have all sorts of implications regarding taxes, at least?  (might get into trouble if you've received allowances you're not entitled to) Or does it make no difference to your tax allowances whether you're married or not?  You'll probably have to inform the tax office now that your partner and children are no longer living in your household, I would imagine. I do agree you need to see a solicitor but sometimes it helps to air some of the issues on a forum so you know more about what you need to ask about!

Our compromis de ventes included a date by which the final acte should be completed.  Doesn't yours?

Looks familiar to me, Miki!  Since we're not exactly geographically close at the moment, I guess its not just something personal to me then! I also find that if I hit the search link on the top right of this screen it ignores me altogether.  If I leave my cursor where it is I still see the little timer as if its doing something - the minute I move my cursor or go to another screen, it stops doing anything.  To have any chance at all of getting results I have to go into the advanced search option - which works when it feels like it.  I can at least leave that one to do its job while I do something else, to come back and see the gobbledegook later!!

I'm impressed you got something, Ray!  Its been really slow for me today and last night - much worse than usual.  I've even tried disconnecting my broadband connection, rebooting my pc and getting back on again just in case its me - but no, its still slow.

lol! incidentally, did the UK used to give discounts on holiday homes?  I know when I was selling my house and left it empty when I moved to this one, I was initially allowed a 50% discount because it was furnished (so is that treating it like a holiday home?) but that was only allowed for six months.  I would have had a total break for six months if it wasn't furnished.  If I hadn't sold it, I would have had to pay 75% (so again, is that 25% discount for 2nd home?).  Then the rules changed just as I sold it (thank goodness) and the discount allowed was only 10% - don't know if this has been abolished now, but that was only in 2003/2004. I'm also not sure whether the policy changes per county, so is it possible the policy differs by department in France?

BJSLIV You can pay annually, from January to October , but you will have to pay the current bill in full by October, and then sign up for the following year. Details are on the back of the bill. Personally I don't see any advantage. I didn't know about this - we were just told we had to pay it (probably because its the first one).  However, there doesn't seem much point if the instalments are basically a year in advance - may as well just pay them into your own budget account and receive the interest yourself! BJSLIV Thanks Debra for pointing out my previous comment concerning the basis of calculation. You're welcome - I would have posted your name along with the quote but I can never remember it!!  Hence "Quote helpful member:....".    The forum was going too slow to page back two pages to see it again (took ages to find your post and copy the quote!).  What does it stand for, and I may have more of a chance of remembering it??!! BJSLIV The good news is that the Taxe D'habitation bills will be along shortly..... Getting a bit worried about this now, as it seems from this thread that last year's bill, which we were quoted, may be totally unrealistic as an estimate for our budget!

[quote]I have just received my first Tax Foncieres bill (sent to the UK) whcih was a bit of a shock. I had put a finger in the air sum of 1000 euro in my budget but it has come in quite a bit more. My ques...[/quote] I believe the answers to 1 and 2 are no and wasn't 3 covered earlier in the thread?  Quote helpful member:   "The base is the notional rental value". Why would you get discount for a second home?  Is that done in any country?  You are usually liable for more tax, one way or another, rather than less!

You can ask the water and electricity companies to send bills to your UK address.

mm I've heard that kayjay (probably from you!) and am seriously thinking of opening an account with them.  La Poste is 3k from our house and the nearest CA bank 11k, and since it seems like a good idea to get an account nearer to home than ours presently is (house in Charente, account in Calais!), La Poste seems like a good call!

The Open University have such a tool, but I don't know what it is - maybe you could ask them?