allanb
-
Posts
1,365 -
Joined
-
Last visited
Never
Posts posted by allanb
-
-
Well, I'll have to withdraw my comments and apologize to Nationwide. I can only conclude that building societies must just be nicer people than banks.On the other hand, if they had shareholders and I was one of them, I might complain that they were giving my money away to the customers ...
-
[quote user="chris pp"]The transaction is always calculated at exactly the middle price that is quoted in the financial press etc. [/quote]I'm trying to keep an open mind. Can you tell us exactly which rate that is and where it is quoted?The point is that if you're right, the bank is doing FX transactions free of charge, and that's about as believable as Father Christmas. (Edited to add PS): In fact if they are giving you the "middle" rate, they would be guaranteed to lose money on the business, because they are paying at least the margin on the interbank rate when they buy the euros. Am I being unfair? I have nothing against Nationwide; it's just that it would be un-bank-like generosity.
-
[quote user="chris pp"]What you get with Nationwide is the "spot" or interbank rate, simple as that and no charges which is as good as it gets.[/quote]I think somebody's kidding somebody here. Nobody gets the interbank rate without commission, except a bank or large corporate FX dealer trading a large amount of money.This is how Moneycorp explains it:INTERBANK RATESThe FX rates large international banks quote other large international banks. The difference between the buy rate and the sell rate, the spread can be around 0.07%. Normally the public and other businesses do not have access to these rates.And this is what HIFX says on its own website about its own rates:All rates shown are based on today's Interbank rates. This is the rate at which banks and brokers buy and sell money to each other. Private individuals and small to medium sized businesses cannot access these rates. They are therefore provided for indicative purposes only.And the spot rate is not the same thing as the interbank rate. There is no such thing as "the" spot rate: a spot rate is any rate quoted for a deal for settlement on the second following business day; in effect, it's a forward rate for a 2-day period.I believe the jargon is being used to confuse people. If you think you're getting a few hundred or even a few thousand euros for the same rate as a professional bank dealer trading several million, either you're being fooled about the rate, or you've overlooked a commission that you're paying somewhere.
-
[quote user="Marc"]So is there any benefit to dual nationality? [/quote]I would also be interested in this, if anyone knows the answer.I do know a few people who have dual nationality, but I think they all acquired it by an accident of birth or parentage. I don't know anyone who chose it deliberately.I also know one or two who have two passports, because they adopted a new citizenship and simply kept their original (UK) passport. (They say it is sometimes useful when travelling in certain countries.) I don't know whether this is quite the same thing as having dual nationality.
-
Thanks for the link. It is slightly disturbing since it mentions only the 40% reduction and not the abattement forfaitaire of up to €3,050. However, when it comes to explaining French tax rules, I have more confidence in the French government than I have in Blevins Franks.I hope you won't lose any sleep over it.
-
Sue: no need to apologize. I said in an earlier post that it sounds too good to be true, and that's exactly when it's wise to have doubts.To be honest, I would still be happier if somebody could confirm it. But having told the tax office what I was doing, at least I feel protected against any accusation of fiddling my return.
-
[quote user="John"]I am coming back to the Forum to ask a "BIG" question. As so many Brits retire to Spain, can you tell me why you chose to relocate to France ? [/quote]We lived and worked in Spain before I retired. Reasons for choosing France, not Spain, for retirement: (1) noise, (2) noise, (3) noise. The Spanish can be charming people, but they don't seem to regard peace and quiet as being desirable in any way, or at any time. Oh yes, and the heat. Although that of course depends where you live; we were in Valencia, where the summers are brutal.
-
I've had a reply from the tax office (by phone, unfortunately, so I can't quote it verbatim, but it was clear enough).The way I reported the dividend is correct, except for where I reported the tax credit. The gross amount (after adding back the tax credit) goes in box DC; the credit goes in box TA. (I had put it tentatively in box AB because there is no box TA on form 2042. However, box TA does appear on form 2042-C, and that's the right place for it.)If you're filing on paper, I suppose you have to ask for 2042-C. If you're filing on line, you start by default with the simple 2042 but you can bring up 2042-C by putting a tick in the box beside the message in section 8: Si vous avez d'autres imputations, cochez la case ci-contre.The on-line simulation confirms my understanding of the two deductions (the 40%, and the fixed amount depending on marital status) so that, in my case, the amount taxed is zero.Unfortunately I can't confirm the treatment of the tax credit because the simulation program doesn't have a place for it. But what the heck - report it. If it reduces your tax (as I think it will) it's a bonus.
-
I've sent in my return (on line) but I've also written a letter to the tax office, telling them how I reported the dividend and asking for confirmation. I think that should keep me out of jail if I'm wrong, since an on-line return can be corrected if necessary.I'll post the result, in case anyone's interested.
-
Spg: I'm pretty sure that a UK dividend, unless there's something peculiar about it, is eligible for the 40% deduction, as well as the fixed reduction mentioned by Grecian (up to €1,525, or €3,050 for a couple).Firstly: form 2047, which is solely for the purpose of declaring income received outside France, contains a section Revenus des valeurs mobilières étrangères with a sub-section 'A' for dividendes éligibles à l'abattement de 40%. So it's clear that at least some foreign dividends are treated this way.Secondly: no. 6 on page 4 of the explanatory notes to form 2047 saysthat the 40% reduction applies to dividends from countries which are members of the EU orwhich have a tax treaty with France - obviously the UK falls into bothcategories.The additional fixed reduction doesn't seem to be mentioned in the notes, but there are other sources for it and, as I said, I have verified that the official simulator brings it into the calculation. So I fully expect to pay no tax on my modest dividend, and to get the tax credit as well.Maybe there is a Father Christmas.
-
I don't know about social security charges, but so far as income tax is concerned I think it is even better than that. Assuming that we're talking about an ordinary dividend paid by an EU company, my reading of the rules is this:The amount you have to report is the gross amount, i.e. you must add back the tax credit (11% in the UK - this is shown on the tax form #2047). This is then subject to the two reductions (abattements) that you mentioned: (1) 40% of the gross amount, and (2) a fixed amount of up to €1,525 or €3,050, as you said. According to my arithmetic, for a married couple, this means that dividend income up to €4,579 is reduced to zero: Tax credit = 11% of 4,579 = €504 Income to be reported = 4,579 + 504 = €5,083 40% reduction = €2,033 Fixed reduction = €3,050 Taxable income = €0But it gets better: in the final step of the tax calculation the tax credit (€504 in my example) is deducted from the tax you owe.It seems too good to be true, but I think it is true. I received a dividend last year (for the first time!) and I have run it through the government tax simulator to check that my understanding is correct, and it seems to be so. I suppose the logic is that you are receiving relief for the tax presumably paid by the company on the profits from which it paid the dividend.Can anyone confirm that this is the way it works? (I haven't yet tested it by filing my tax return.)One small point: on the tax declaration you do not deduct the abattements - this is done by the tax office. Sorry, but I don't know if there are special rules for funds held in an ISA.
-
Am I right in thinking that if you complete the tax declaration (form 2042) and any other tax return forms that may need to go with it, like form 2047 if it applies, you will automatically comply with all reporting requirements for assessing your social security contributions?
-
[quote user="Sunday Driver"]The impots on-line simulator also features a simplified 2042 which is the same as my paper form.[/quote]For some people, it may save wasted time to know that the on-line simulator is still not capable of dealing with those kinds of income which are not taxable in France but which have to be taken into account in calculating your tax rate, e.g. pensions from government employment (civil service, police, etc) which have to be reported on the paper form in box TI.The slightly irritating thing is that the simulator lets you work all the way to box TI, which is nearly at the end of the form, before it tells you this.
-
The décote is not just a generous gesture by the tax office, but a calculated reduction in small amounts of tax to make them even smaller, all the way to zero. The formula includes the number of parts in the tax calculation.
-
Cooperlola: Thank you for straightening me out. Actually I when I saidrevenu global I meant to say revenu mondial. But I got it wrong anyway.So far as the "credit" is concerned: [quote user="Ron Avery"]AFAIK if you have income taxed in the UK it is taken into account when calculating the tax to be paid on other income not taxed in the UK and liable for tax in France. Say you had 3,000€ income in France, on top of a civil service pension taxed in the UK, you would pay tax on that at the appropriate rate it would not be treated as being part of your free pay. In France, what is used for payment and assessment purposes for health charges for example is the revenu fiscale de référence.[/quote]My understanding is that if your UK income is £10,000 on which you have paid UK tax of £2,500, it is the equivalent of the net £7,500 that is taken into account (as revenu exonéré) in computing your French tax rate. (1) is this correct, and (2) is this the credit that SD referred to?
-
[quote user="Sunday Driver"]Section 8 of the 2042 allows you to enter foreign earnings which are taxed at source under the applicable dual taxation treaty, eg UK government pensions, and which give rise to a French tax credit to offset the tax already paid.[/quote]SD: can you shed more light on this? I believe that a UK government pension (i.e. a pension for government employment) is taxable in the UK - full stop. (Whether it is taxed at source or taxed later is another matter.) I don't understand your reference to a "French tax credit".[quote]Whilst not taxable in France, these sums entered are taken into account in calculating your overall revenu fiscale de référence.[/quote]I agree with this bit, except that it's your revenu global, not your revenu fiscal de référence.
-
Panda: it's based on the notional rental value of your property, which I think is assessed by the local mairie. Both the value and the rate can change, as could the allowance for dependants, as you mentioned.However, if your income is less than a certain amount the tax is reduced, so it can be affected by income and I apologize for suggesting it isn't.
-
[quote user="Panda "]Tax d'hab most definitely is based on income, it's been discussed on here many times, mine was 300 the first year when I had made no tax return, the next when we had just started in business it was 50 euro's, this year with a full year under our belts we are expecting to return to the 300 mark. If you check the bill your income is stated in the top right. [/quote]I think I can clarify this. The taxe d'habitation is not based on income. The income number that appears on the form (top right) is labelled "RFR", which means revenu fiscal de référence; you will find this on your income tax assessment, and it's used in some mysterious way as part of your tax identification. If and when you opt to make your tax declaration on line, you'll find that this is one of the numbers you have to enter from your previous year's return, together with your tax i/d and your numéro de télédéclarant.
-
[quote user="Benjamin"]Just Google travel plan direct and have a look for yourself.[/quote]Good idea. I did, but they don't offer cover for anyone of my great age (>65), so my enquiry didn't get very far.
-
I'm also looking for travel insurance and haven't found it yet.[quote user="daisymay"]We paid £74 for annual worldwide cover for a couple. The company is Travel Plan Direct and it is all done over the net.[/quote]That sounds good, but can you give us any detail about the risks covered, limits, excess amounts, etc? It's difficult to make comparisons without that kind of information.
-
[quote user="cooperlola"]The o/h's pension is paid into a UK bank, so I realise that I'll have to do the currency conversion. However, mine is paid direct into the bank here...[/quote]Same here. For my pension, I simply declare the total euros received - I don't see how anyone can argue with that. However, I add up the pounds as well, work out the average rate, and use that rate to convert my wife's pension.It hasn't been challenged; but then again, I don't know anyone who has actually been challenged on the exchange rate. Has anyone had to deal with this?My belief (but it's only a belief) is that the rate quoted by the tax office is a kind of default rate : if you use it it will be accepted, but if you have a logical reason to use a different rate there's no reason why you shouldn't.
-
Thank you - also to Glynn. I'll have a go at the spreadsheet. I use a Mac, not a PC, so I don't know whether that will be an obstacle.My home-made spreadsheet would have to be tweaked a bit to bring in the effect of social security contributions, which I ignored. Is it realistic to use 11% throughout?I think we will always have minor differences unless we go into detail on questions like: how frequently is the interest added to the fund? - do we assume withdrawals at the beginning or end of each year, or some time in between? etc etc - not worth the effort in my opinion.
-
If I understand you correctly, there is indeed a deferred tax liability on the untaxed interest, which will affect subsequent withdrawals - but the liability ceases to exist when you die.I have some problems with your numbers, though. [quote]After 8 years the account has grown by €108k of which €15,082 has been taxed...[/quote]How has €15,082 been taxed? Isn't it €4,860, i.e. 8 x €607.50?[quote]After 20 years the account has grown by €270k of which €35,177 has been taxed...[/quote]Similarly, why not €7,182, i.e. the €4,860 plus another 12 x 193.50?More important: [quote]In this example by year 20 the growth of the investment is 47.37% (270k / 570k =47.37%) and therefore the withdrawal of €13,500 less the allowance of €9,200 equals a taxable figure of €4,300 x 47.37% = €2,036 [/quote]This implies that the 'taxable interest' component of the withdrawal is calculated by taking the accumulated interest compared with the total fund as though there had been no withdrawals.That makes sense, but if it's so, why doesn't it also apply to the early withdrawals? I.e., the taxable element would be 4.5% in year 1 but then 8.6%, 12.4%, 15.9%, etc, in years 2, 3 and 4?This calculation gives about 25% after 8 years, and if I keep going I get 47% after 20 years. Since you also came up with about 47% I assume I've understood that part correctly.PS: I suspect that my three questions are all related. Going back to one of your earlier posts, you said: [quote]Take a couple investing €300k in a capital safeinvestment at 4.5% producing €13.5k a year as a top up to a statepension. The taxable element is only 607€ as opposed to 13500€ outsidean AV. After 8 years the taxable element falls to €194.[/quote]This gives the impression that the €607 stays the same for 8 years, and then the €193 for the next 12, but I think these amounts are valid for one year only, after which they increase progressively.If so, I'm not saying that it negates the value of an AV, but it certainly means that the tax treatment of withdrawals is not as sensationally favourable as we might have thought.
-
I had the same problem as many other people : a very green and murky pool after the winter. I've been reading the advice given on this forum, especially by Poolguy, who clearly thinks it's important to be careful about which anti-algae product to use.I've already used some (bought before I started to search on the forum!) and the trouble is that I don't know what's in it. It's called ALGI 3 A, and the only clue about its contents is a warning that it contains polyquaternaire. Googling suggests that the full name of this ingredient is "ammonium polyquaternaire", but I'm not a chemist so that tells me nothing.I used it after a couple of shock chlorine treatments. What I have now is a pool in which the water is much clearer than it was at first, but still cloudy. In the shallow end I can see the bottom fairly clearly, and the water appears blue. In the deep end I can't see the bottom, and the water is more green than blue. This hasn't changed noticeably for about three days.I'm filtering a lot, and when I backflush, the water coming out of the filter is a very pale green and clears quite quickly (in less than a minute). I'm also using a robot, and its filter gets clogged from time to time with bright green stuff which appears to be very fine -- much finer that the usual garden debris.So I strongly suspect that my main problem consists of algae: but what to use?I would be grateful for any advice.
No more dual Nationality?
in French Legal Issues
Posted