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adrianpmills

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Everything posted by adrianpmills

  1. To Arnold - if you spend more than 183 days in a tax year in the UK you will be resident.  If you claim to have left the UK then your return visits must average fewer than 91 days per year since you left or over the previous four years, whichever is the sooner. It therefore sounds like you are UK resident as your 'visits' exceed 91 days per year. However, the french may also regard you as resident if you spend the majority of the year there - or on other determinant factors, eg:  if your family is based there - kiddies in school. You could decide to remain UK resident and take precautions to avoid french tax residency, or you might consult the tax treaty tie-breaker rules to find out if there's a way of avoiding UK tax residency.  However, a possibility of dual residence would probably warrant professional advice as no doubt both tax authorities would seek to claim you.                 
  2. My opinion differs from the previous reply.  Your UK property will cease to be your main residence once you move to France.  It becomes your secondary residence. However, if you sell your UK house once you have moved abroad permanently (defined as more than five years) then you will have no liability to UK tax. A capital gain potentially arises if you return to the UK within five years of leaving (ie: the Inland Revenue regards you as a temporary non-resident).  Only the gain attributable to the period when the house was a secondary residence is taxable (calculated by apportionment over your whole period of ownership).  However, the last three years of ownership are discounted from the calculation of the gain. So even if you do return to the UK within five years - as long as you sell your UK property within three years of leaving, you will still have no UK capital gain (assuming that the house has always been your main residence prior to leaving).   Under the current tax treaty between France and the UK there is no french tax liability on the sale of a UK house (immovable property is taxed in the state in which it is located).  However, this changes once the new UK France tax treaty comes into force - which is unlikely to be before 2007.  Under the new rules a gain on the sale of a UK property will be taxable in France with credit given for tax paid in the UK.  As the latter will be nil for a permanent french resident - then there could be a hefty tax bill in France.  So selling a UK property before the new treaty is in force is advisable. Basically, if you sell your UK house next year you should be ok.  Any longer could be costly.  
  3. ntc - you could try this link.  There may be a few specialist lenders who could offer you a UK loan secured against a french property, although I have not heard of a case.  I would have thought that the market would be much more competitive for a french loan on a french property or an equity release on your UK property. http://normandy.angloinfo.com/af/254/normandy-home-financing-and-mortgages.html
  4. Thank you Celine - good link.  I have already read both the UK version and French versions of the tax treaty.  However, I cannot find anything specific to this type of investment.  It has some of the characteristics of interest yielding investments and some of dividend yielding investments- equally it might be construed as income or capital gains.   If anyone else has with UK with profits bonds, or experience of their french tax treatment I would be keen to hear from them.
  5. Maybe it's that simple - although how does one define profits? The annual 'interest' element is easy to work out and declare annually but the terminal bonus element, which accrues over the life of the bond, only becomes definite upon encashment - as does any market value reduction.  Also the bond profits are  deemed paid net of UK basic rate tax - therefore is there any method of relief (in the UK or France) if the profits are further taxable in France?  I can't find anything obvious in the UK-France tax treaty to cover these investments.  They are similar to French assurance vie contracts - but I assume as they are foreign investments they do not automatically attract the same tax treatment.  Any help would be appreciated. 
  6. This may be a bit of a long shot.  Does anybody know the french tax treatment of a UK with-profits bond for a resident of France? 
  7. I think the house Julia referred to is the one in our hamlet.  It is progressing well - the windows and doors went in today.  The roof is almost ready for tiling.  It looks great - very suitable for its forested location.
  8. Mince pies, sausage rolls and bucks fizz went down with our neighbours last year.
  9. Just a timber frame - or all timber, a log house?  There's one of the latter kind being built by an english couple just down the road from us.  If interested, drop me a line. Adrian (Haute Vienne nr St Leonard de Noblat.    
  10. Not too complicated.  The gain for a resident of France (over the whole period of ownership, not just since you left) is calculated at sales proceeds less acquisition costs (including allowable costs of improvement), less some allowances for indexation (inflation).  Tax is 15% plus 11% CSG (social contributions) of the gain - ie:26% in total.  There is a reduction of 10% per year of ownership after the first five years - ie: tax free after 15 years. A capital gain would also count towards your income for the contribution of CMU (health) contributions.      
  11. I have researched the situation thoroughly as I am also a french resident with a UK property and I don't think any specialist could add much to Cathy in le Lot's reply, which is spot on (I don't mean to sound patronising by that).  Unless you will have owned the property for at least fifteen years then you could end up with a substantial liability to french tax if you sell once the new tax treaty is in force.  Even if you sell and return to the UK within the five years (ie: you will be caught under UK tax by the temporary non-resident rule) then the capital gain crystallising on return will be mitigated by the three year rule, taper relief and letting relief.  That risk could be not too bad - all depends on how long you have owned the property and how much it has gone up in value.
  12. Normally, you would declare any income annually, such as dividends, but not changes in value of the underlying investment.  Gains realised on sale of equity investments would be dealt with under capital gains tax.
  13. We have received a quote for installing our woodburner. I would appreciate your views on whether it is reasonable: 7ml gaine inox (greek letter theta) 167, unit cost 56.76 - total E 397 Other materials (an RA and CTF ??) E 44 Installation including register plate and insulation E 381 Total before TVA is Euros 822. Thanks
  14. Final attempt at posting the photo before I thump the computer and have a beer:  
  15. Second attempt after registering to village photos - it is a very poor quality version of the original. Please let me know if visible.  There are about 150 birds in this wave:
  16. I live in the eastern Haute Vienne.  We had a dozen or so large waves come over on Monday - probably 2,000 or so birds in total and some smaller waves in the last couple of days.  They always seem to pass over us late afternoon.   Last year it got very cold just after they left.              
  17. Just a consideration. If you are looking at setting up a property development business, or engaging in property development as a regular source if income, you may be looking at income tax on trading profits (VAT implications too) and not capital gains tax - a lot probably depends on how quickly you intend to turn over the properties.            
  18. If you move to France with the intention of residing there indefinitely you will become a French tax resident the day after your arrival. You will also be deemed to be tax resident if: France is your main residence or home; you spend more than 183 days there per calendar year; your principal activity is in France; most of your substantial assets are in France. As if that isn’t enough, there is a also an unusual “catch all” in that if you spend more time in France than in any other single jurisdiction then you are also deemed to be resident of France. And, finally, if your spouse is resident of France then you too will be considered resident of France! If you meet any of these criteria you are liable to pay French taxes on your worldwide income.
  19. My understanding is that a marron and a chataigne are both sweet chestnuts.  A marron d'Inde is a horse chestnut. The explanation I have been given by a neighbour for the difference in sweet chestnuts is that a marron is commercially cultivated from a grafted tree.  Chataignes are wild.  The marron is generally larger, the chataigne generally tastes better. Sounds plausible?      
  20. If anyone subscribes to this online DVD rental outfit, please be advised that they appear to have gone bust - there are cases where thay have continued to collect subscriptions despite no ongoing service. 
  21. I've ordered lots of stuff from Play over the last three years.  They are excellent and I normally find them cheaper than their rivals, often siginificantly so.  Eg, I've just ordered a CD for £9.99 that HMV are selling for £16.99.
  22. You may be able to count your UK house as a business asset - if it is let furnished and contributes greater than a certain percentage (can't remember exactly what, but 80% comes to mind) of your total income.  If you can then it will not be included in your total assets valuation.  I'm not sure that the assets underlying your future pension should be included - unless they are held directly by you.  www.impots.gouv.fr has guidance.
  23. The Leclerc hypermarket sells food, clothes, electricals, garden stuff, books, CD's, DVD's, stationery, some furniture, toys, etc.  Similar to Carrefour. There are several depots de vente (secondhand warehouses) selling furniture, electricals, bric a brac, junk, clothes in Limoges and elsewhere. These are excellent for furnishing a home.  'Vide grenier' sales (car boot sales) are also quite frequent. Adrian (87, nr St Leonard de Noblat).  
  24. Our area of the Limousin is still good for the odd bargain - plenty in certain parts around your budget.  Lots of young families are here and arriving.  At my son's school there will be 10 english kids and 30 french next year.  It is one of the most unspoilt region in France.  Very scenic.  Hilly and forested.  Lots of old stone houses, fewer modern houses than elsewhere.  Weather is variable and enjoyable.  Work is scarce, unless you have a trade then you will no problems.  Eastern Haute Vienne, Northern Correze and Southern Creuse are my favourite bits.  Certainly recommend you taking a look.  We have friends who live very happily on not a lot.  Good luck.
  25. I read a lot of forum comments saying that the gite market is saturated. We live about half an hour from Vassiviere and know the region well. I reckon that there's a definite market here.  There is a lack of gites here and the area has been very well publicised over the last couple of years.  We have just bought a property with the intention of doing the same thing.  Good luck.
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