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Everything posted by parsnips

  1. Hi,Depending on the size of the lump sum you can either declare it with your normal pension     ( form 2047 page 1 part 1 section 11 "pensions,retraites, rentes"..privé. 1AM - and as you are liable to CSG ( unless you hold form S1) -page 4 "pensions, retraites,rentes" .. 8 TV or 8TX *. , then to form 2042 page 3 part 1 "PENSIONS ,RETRAITES, RENTES " Box 1AM,or, if  you think it is large enough to put you into a tax bracket above 7.5% ..........................you can declare as pension taken as capital..2047 ...page 1 ."PENSIONS DE RETRAITE VERSEES EN CAPITAL"  1AT.....and page 4 section 9 ..8SA or 8SB (see below for guidance on which to choose)..then 2042 page 3 section 1 box 1AT. *see here -page 4 for income limits for each amount (if in doubt enter at 8TX or 8SB)........ https://www.impots.gouv.fr/portail/files/formulaires/2041-gg/2018/2041-gg_2287.pdf I'm afraid that's as simple as I can make it -- if you still have problems I can only suggest going to the tax office for advice.
  2. Hi,     I think you have to fill the whole section 200, "DIVIDENDS ELIGIBLES A L'ABATTEMENT  DE 40%"..even though there's no tax credit now, you fill lines 201 to 207 (204.. 17.7%)and end with credit = 0. ...then carry the gross over to 2DC.     Bank interest  ...same; section 230 to 237 ...again result credit 0 then gross to. 2TR.
  3. Hi,    As I have pointed out, the system used now is not the "taux effectif" , but the somewhat similar "credit "system which replaced it in the "new" tax treaty of 2008.   Although the rents themselves are not taxed , the inclusion in the overall tax rate calculation can result in a higher rate on the french taxable income.     The income tax calculation is as follows ;  (say 20000€ net rents , and 25000other (french taxable )- income for a couple.)   Total income 45000 x 0.14 - 2746 = notional tax 3554€* ...................3554 x 20000 / 45000 =1579 credit .......final tax 3554 - 1579 =1975€ , after applying the "decote" mechanism , this reduces to 458€ before any deductions special to you , like donations to charity.    The social charges calculation is simpler , From whatever the overall CSG comes to on the total income a credit equal to 20000 x 17.5 is deducted .   If there is no other income on which GSG is legitimately due (bank interest dividends etc) the social charges should be 0. If only the 25000 was taxed the bill would be 754 - decote  (1939 -(754 x3/4 ) =0 tax*So there is significant effect on the income tax depending on how much of your income consists of rents but it is quite similar to, but slightly less favourable than the result of the previous "taux effectif" system. I'm afraid you'll have to take my calculations on trust as a full explanation especially of the "decote" would take a lot of time and space.   * this is using a quick calculation from the "Le Particulier" magazine.
  4. Hi handy 38,I sent you a PM yesterday but it doesn't seem to have reached you;Here is a copy;    "Hi handy,    I note your latest message , but I see from what you wrote below that you did not  declare correctly last year.  (bear in mind that however you declare UK rents they are totally exempt from french taxes and charges -article 6 of the DTT 2008) . If I were you I would  just put the  net rents in 4BA and 4BL and 8TK on 2042 and sections 4 and 6 on 2047 .  Box 8TK is the most important of all.   Section 8 on 2047 "revenus exonerés pris en compte piour le taux effectif " does not concern UK tax-payers , and should not be used. ( This was changed in the 2008 treaty)   Hope this helps," I feel you are overthinking this subject (easy to do in the morass of french taxes),   Just declare the rent net of UK- allowed deductions.  If the figures are april -april and its easier to use them , do so.   If the tax office want any further info , they will ask for it (unlikely).  They know that whatever you declare, it is exempted from all french taxes and they are unlikely to spend time chasing income they can't tax.    Having said that ; you will now probably see a load of posts explaining in excruciating detail  how the system actually means you are taxed twice on the same income - you are not.  
  5. Hi handy38,  I just got your message , will get back to you tomorrow.
  6. Hi,     They don't show the relevant calculation on the avis, but for income tax the credit is basically the tax calculated on the whole income (exempt + non-exempt) X  the exempt rent / the whole income  = credit , this credit is subtracted from the tax on the total income to give the tax payable. For Social charges (should be shown on avis) the types of income - revenus de valeurs mobiliers (dividends and interest) which are liable , and separately, revenus fonciers (rents) which are not.    The various charges are then set out for each category of income , and then a credit equal to the contribution calculated on the rent is taken off the total.   Hope this clarifies .
  7. Hi,      S1 status is irrelevant in your situation.     All income derived from "fixed assets" (real estate) -ie. rents in the UK is taxable only in the UK and exempt, under article 6 of the double tax treaty of 2008 ,from all french taxes and charges-   (however, capital gains from sale of UK real estate is not exempt)..     Other investment income , dividends , bank interest etc., is taxable in france , and also liable to social charges.    What the tax office told your husband is rubbish - the exemption is enshrined in the double tax treaty.     There was , several years ago, a lot of mistaken application of social charges to UK rents , mainly due to the poor drafting of the treaty, but I thought this had been sorted.  You can find all (and more than) you need to know on the French Entrée Forum , which although now closed , has archived all its past info - look under "social charges , UK rents'.  You may also find some info by searching this forum (I seem to remember posting a model reclamation letter here.) .
  8. Hi,      I have seen on other forums posts listing the UK banks which will open accounts for expats. Anyone needed to open one should be able to find one with some research.
  9. Hi,     I have to say I think, that for existing pensioners,  these fears may be overdone .  I think that any failure to agree "pasporting" would prevent insurance companies etc. from seeking new business in europe.  In the worse case,  I can see no way that pensioners could not pay their pensions into a UK bank account and then use " transferwise" ," xe.com", etc. to transfer to a european bank.    Maybe a banking expert on here can put me right.
  10. Hi,     Income derived from UK real estate is exempted from all french tax and charges by the Double Tax Treaty (article 6).     This exemption does not apply to capital gains from UK real estate sales (article 14).    As previously mentioned only pension income is exempted from CSG by the S1.
  11. [quote user="NormanH"]"Invest 12 Euros in the Connexion tax guide. It answers all your questions. " That is possibly one of the worst pieces of advice I have ever seen on this Forum. Better known as "The Correction" it has been wrong very often, but for some  reason Brits continue to believe it. All  the information needed is available from the https://www.impots.gouv.fr  site and nothing else is valid. [/quote] Hi,   I agree absolutely.  Over the years the "Correction" has regularly published  misleading advice , and despite its nickname is loathe to admit its mistakes .  Save your money.
  12. Hi,    On your" espace particulier" on the impots page click on "consulter" -" ma situation personel documents ,avis, paiements" - on the window which comes up click " mes documents" and use the headings 1 2 and 3 to find documents going back (in my case)  to 2004.   You can also get details of your payments.
  13. Hi,      A possibility that has not been mentioned;      If you have been tax  resident in France for 2 years , at any past time, you are exempt from CGT on a second home - CGI article 150U.
  14. Hi,     Insurance products like endowments ,according to this :- https://www.impots.gouv.fr/portail/international-particulier/questions/comment-declarer-mes-comptes-et-mes-contrats-dassurance-vie - should be entered on form 3916 .    In the days of paper declarations  one had the option of box 8TT which was specifically for insurances abroad , with details on "papier libre", but with  online declaration this is no longer available .  This has caused  misunderstandings- (including mine).
  15. Hi, Because the OP has a private pension with a pension provider.   IMO that is not a deposit holder.  If it were then anyone with a defined contribution pension scheme  would have to declare it on form 3916 every year .  AFAIK that is not the case,  All the government definitions I have seen refer to "comptes" and it is obvious from what is written that these are seen as deposits lodged with banks or some other agents (notaires etc) to keep money already in the depositor's possession , either with or without the payment of interest.  The object of the form 3916 is to "winkle out" money being "hidden" abroad to avoid tax.     That is only my interpretation , for what it's worth.
  16. Hi,         IMO the form 3916 is not appropriate for pensions.   The OP's lump sum pension can be declared in two ways ;   If it is a fairly small amount and the OP normally pays little or no impot sur le revenu - form 2047  page 1 (privé) and 2042 page 3 box 1 AM.  If large and the OP normally pays impot sur le revenu at around 7% , 2047 page 1 (privé), then 2042 page 3 box 1AT.* *(Provided the 2019 forms are not changed)
  17. Hi,     When I got my repayments (for 2011 - 2014 inc), the statement had a box top left of the  front page giving the roll numbers and the years and other guff , and also a line saying "interets moratoire  oui/non" ticked oui : but  no interest had been included; I advise the OP to do what I did - check that the same is on his paperwork and simply send an email with a highlighted copy of the statement, saying that no interest had been received by me , and was there a problem ,     The interest was promptly paid .   Having received a total repayment of well over   6000€ plus interest , I wasn't too concerned with the minutiae of compound v simple .     
  18. [quote user="Ian"]My wife died just before Xmas. We were both resident, as far as tax goes, in France. I'm trying to sort things out, and I've a couple of questions regarding french tax. We were paying tax, based on my occupational pension and two state pensions - hers and mine (not that I saw much of hers......). Now, the household income is reduced by her state pension (about €7500 pa?), but we're now a single person household so I suppose there will be lower allowances? So, can anybody give me an idea of what this will mean in tax terms? I'd like to know in advance, in case I need to save up. Secondly, I read somewhere that I can offset the funeral expenses against tax. Sounds very unlikely, but who knows. Cheers [/quote]  Hello,  In fact you need to make two declarations for 2017 income ; one up to the date of decease,  as in previous years , and one from that date until 31/12/2017 as a widower.   It may be that you received no income in that period but it fixes the date for the tax office. Your liability for 2017 will be practically unchanged.   As to the change in liability for this year's income  , without full figures it is impossible to say for sure , but if I take the two state pensions as 7500€ each your occ. pension as say 25000€, then your 2017 tax would be about 40000 - 3700 = 36500 x 0.14 -2746* *formula for couple.  =2364€tax  -decote 165€ = 2199€ payable (ignoring any other deductions you may receive).    This year 2018  using the same income figures (less 7500€ ) and last years formula: 32500€ -3250 =29250 x0.14-1373**=2722€ (no decote due) tax payable 2722€ **formula for widower.   On the figures I have guessed at the change would  not be life-style changing - obviously both figures would be greater the bigger your occ. pension , and any other income you may have.    Even though no IHT is due between spouses , a declaration of succession has to be submitted to the tax authorities and funeral expenses can be included ( a bit pointless as you have said) ; the notaire can make it (for a quite high fee ), or you can do it yourself (-it's no more difficult than a complicated income tax declaration-I've done one for a friend) see here: https://www.impots.gouv.fr/portail/particulier/declarer-une-succesion     
  19. Hi,         Taxes and CSG on french house sales are the same for non-residents regardless of their country of residence.    There used to be a higher rate for residents of "third countries" but this was ruled illegal by the conseil constitutionel.   In fact there is ongoing litigation which may prove advantageous to "third country" residents ; see here; https://www.lesechos.fr/economie-france/budget-fiscalite/0301159470835-csg-des-non-residents-le-nouvel-imbroglio-fiscal-2145672.php
  20. [quote user="napoleon"]Back in March 2015 I read a report in The Telegraph stating that the EU Court had ruled that the Social Charge imposed by M. Holland was illegal for non French residents selling their second homes. Could someone please clarify the current situation? We are planning to sell in about 5 to 10 years time and are hoping it has been resolved in our favour. Thanks, Alistair[/quote]: Here are two links to sources giving the present situation ; (there is still an ongoing dispute at CJE level about the legality of the french position. ) The second  link  includes details of the special exemption (subject to certain conditions ) given to some non-residents ; whether this will still be available after Brexit is unknown. #https://patrimoine.lesechos.fr/impots/impots-revenu/0211940316171-special-impots-2017-les-non-residents-doivent-ils-payer-la-csg-sur-les-revenus-du-patrimoine-2080516.php #https://www.impots.gouv.fr/portail/international-particulier/plus-values-immobilieres
  21. Hi,      As has been said , if you have an account with an"espace particulier" on the impots  website all your documents should be there under "Consulter".     If you haven't yet got an account go to the impots site and create one.
  22. Hi,   Another well known and quite busy forum is being closed by its management in March; I anticipate that there will be a surge of new members here between now and then.
  23. Hi,        Why not apply for a permanent residence card "-carte de sejour permanente"; it's free , and the formalities are much less stringent than for citizenship, which can take up to 2 years or more and is quite expensive.   Also getting the french passport is not a mere formality; I know someone who has a french partner , and a great deal of capital on which they live , speaks fluent french but was turned down as they didn't have a permanent job.       Do you think you will feel less like a fish out of water when you go back to the UK bearing a french passport?
  24. Hi,     It all depends on how you get on with your children.   If well, and there are none from a previous relationship , no problem ; if not, under french law step children can contest the "attribution integrale" to get their reserved part.
  25. Hi,     As a french resident your gains are not subject to UK tax, only french.  There are arrangements under the french tax regs to reduce the extra tax caused by such one-off large sums on the declaration.    Such amounts are declared under Box 0XX -(revenus exceptionnels ou différés) on form 2042 (the usual declaration). See the explanation here; . https://www.impots.gouv.fr/portail/particulier/revenu-exceptionnel-ou-differe It might be wise to take your declaration to the tax office to discuss your situation when the declaration is due. Don't forget to translate the purchase and sale prices into their € values on the day of purchase and sale , with the £ so low now , this can make a considerable saving on the final tax bill.
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