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parsnips

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Everything posted by parsnips

  1. Hi,    If you would only read the instructions on the form you would see that you enter the lesser of 17.7% or "the actual tax borne in the UK".   So you don't use 17.7% for 2016 income, you use the actual figure which is around 11.1%.   However , 2017 tax certificates show 0 tax credit , so on the face of it you should enter "0" on the 2047 and 2042 for tax credit .      When I looked at 2016 and 2017, I found that the tax credit appeared to be based on a reduction of the" dividend rate "  used by the company to calculate the dividend payable. So any tax is paid by the company.  I have written to one of my investment holders asking for clarification on this , and also to what taxes their profits , on which the dividend is based , are subject.   It would seem to be that the 19% corporation tax  must impact on the dividend.   I think  that, based on that ,one would be justified in claiming the default credit of 17.7% next year.   The form 2047 asks for the actual foreign tax which the the dividend has borne, not what tax has been paid abroad by the declarant.
  2. [quote user="Blodwyn"]If we sell our UK house, I believe we will be liable for UK CGT (if we sell for more than when we bought it in 2007). But then we would have to declare it on our French tax form. Would we be taxed in France as well? (Wondered because someone has asked if we want to sell.)[/quote] Hi,  It's more complicated ; see the HMRC site or email them giving full details ; when you became non-resident , when you stopped living in the house -was it your principal residence, have you let it out etc.  For french CGT see here ;  https://www.french-property.com/guides/france/finance-taxation/taxation/capital-gains-tax/ ...... section on property outside france.
  3. [quote user="CeeJay"]Am I now right in thinking that for a reduction or credit e.g. Government employee pension, then an additional, or replacement form 2042 RICI is required and presumably that form will be available on line to complete? [/quote] Hi,     The 2042 RICI is no use as it is concerned with  credits for donations to charities:  we have to wait for the "Notice " to 2042 -2017 which has not yet appeared online .
  4. [quote user="fredg"]Hi, I have ascertained that, for a beneficiary resident in France, French tax is generally not payable on an inheritance from a UK estate. However, I have also read that Trusts are treated specially in France since 2011. I am the future beneficiary of a Uk-based Interest in Possession Trust (set-up by my grandfather, capital due to pass to me when my mother dies, both were/are also UK-based). Does anyone know if the inheritance from the Trust will escape French tax like a normal inheritance, or will it be taxed in in France because it comes from a Trust. Thanks!![/quote] Hi,     You need expert advice ; see this     www.bdo.gg     you may wish to contact the company .  
  5. [quote user="mint"]Congratulations, Parsnips!  And thank you for letting us know about the 2015 contributions.  I might send off an email initially to see how the ground lies or go the full hog and send in all the necessary docs. Nothing ventured, nothing gained, huh? [/quote] Hi,      Latest; full refund (several k) appeared in bank acc. today. 
  6. [quote user="idun"]parsnips I am sure that I have read that such a donation to a friend or distant relative for example could end up with a 60% tax bill. I am sure I read it in french, where, unfortunately, I didn't save it. [/quote] Hi,    Yes , that's right, if the tax office knows about the gift; but as I explained , you are not legally required to declare receiving such a gift , so , if you transfer the money between UK bank accounts , or in cash, and avoid large unexplained deposits in your french bank accounts (the banks will inform the tax office), there is no way the french tax people will know about it.
  7. [quote user="mint"]How much money can someone from the UK give you as a present before you need to declare it? It's not "funny" money, would be money legally earned and UK tax already paid on it[:D] [/quote] Hi,      There is no legal requirement to declare a "don manuel" of cash or other non real- estate . There are only 3 situations when such gifts have to be declared :  1. If the french tax authorities become aware of the gift - ie informed by a french bank (as they do) of a large sum being paid in with no known origin - so pass the money via UK accounts possibly in stages . 2.If you spontaneously declare it to  the tax office -why would you if it is not legally required? 3.A reserved heir is supposed to declare a gift at the (french) succession of the donor- not applicable here. I assume that the money will be transferred to you in the UK so you have no need to declare it anywhere.  Even if the most unlikely happened and the french tax office , in some way , learned of the gift , there are no penalties, provided you gave details within a month of them asking you about it.
  8. [quote user="parsnips"][quote user="mint"]Parsnips, any feedback, positive or otherwise, as to whether claims for 2015 were allowed, please? [/quote] Hi,       I submitted a claim for repayment of 2015 income contributions soon after the demands came last autumn , I was told it was sent to the legal department, and have not yet received a refusal- (or a refund). [/quote] Hi,      At Last!   I have had a letter conceding full repayment for 2011,2012,2013, and 2014. (and promising interest).    For 2015 income they have repaid contributions I claimed which were "prélévé" from my french life assurances, and my taxable PEL, all of which were taken on 31/12/2015.    They have not refunded contributions on dividends and foreign interest which were declared  and taxed in 2016 .   Once I have the money in my hands , I shall pursue this issue until the CJE rules definitively.    
  9. [quote user="mint"]Parsnips, any feedback, positive or otherwise, as to whether claims for 2015 were allowed, please? [/quote] Hi,       I submitted a claim for repayment of 2015 income contributions soon after the demands came last autumn , I was told it was sent to the legal department, and have not yet received a refusal- (or a refund).
  10. [quote user="Grecian"]I would just like to say thank you to parsnips, after just over a year of submitting our claim for our social charges refund, things were finally sorted out just before Christmas. It took just over a year in total. So thank you very much parsnips for all your assistance that you provided, and the template letter that you generated. I hope that you have had your social charges refund also.[/quote] Hi,    Thank you for your kind words.   Last week, after my re-sending S1 details the tax office asked for a RIB , so fingers crossed for a possible result.  I'll let you know.
  11. [quote user="Mrs KG"]Thanks for the posting as I have done exactly the same this year and had intended to show it exactly as Parsnips as said. I do have a question regarding the 3916 form. Would a UK draw down pension of this type mean that it is an account that should be listed on the 3916 form. What was originally just a personal pension plan is now, due to the new british government changes has become a glorified investment account. What a conundrum! Thanks, Mrs KG[/quote] Hi,  Personally I don't think you need declare it as an account, as you are declaring the income from it as a pension under the french rules for doing so.  I believe the requirement to give details of foreign bank accounts is to catch people who hide money in overseas accounts from which they are not declaring interest.
  12. [quote user="Visky"] "If, as I take it you mean, you will be taking reasonable amounts each year to  boost your total income , and you don't normally pay much or any income tax, you should declare on 2047 page 1- "pensions , rentes ....etc" and 2042 box 1AS." Thank you very much indeed Parsnips, that is exactly the case.  " If you are in receipt of UK state retirement pension (with S1) you will not be liable to CSG." May I ask if this still definitely the case (ie because it's pension income),  or is this historical and likely to be challenged under the new rules for "Social Contributions" brought in this year for investment income?  I ask because our local Tax Office are notoriously difficult and unpleasant to deal with and I don't think I could face the long, drawn out claims procedure! Hi, For the foreseeable future CSG on pensions is covered by this ; http://www.droitissimo.com/sites/default/files/formulaires/Cerfa_50148-19_2041GG-2016_Notice_Revenus_source_%C3%A9trangere_outre-mer.pdf - section "champ d'application" line 1, which defines the pensions subject to CSG, and by implication , those (covered by S1) which are exempt. It is impossible to predict future possible changes. [/quote]
  13. [quote user="Visky"] I plan to start drawing down from a UK pension pot, and I'm trying to work out the likely amount left after deductions.  Fully French tax resident for many years.  I think I'd be better declaring off it as normal income (not the special 7.5% thing), and I know it carries an automatic 10% rebate, but cannot work out the Social Contributions liability, if any. I'd be most grateful for any clarification. [/quote]  Hi,     If, as I take it you mean, you will be taking reasonable amounts each year to  boost your total income , and you don't normally pay much or any income tax, you should declare on 2047 page 1- "pensions , rentes ....etc" and 2042 box 1AS.  If you are in receipt of UK state retirement pension (with S1) you will not be liable to CSG.   If not , you should declare on 2047 for CSG in accordance with this;          http://www.droitissimo.com/sites/default/files/formulaires/Cerfa_50148-19_2041GG-2016_Notice_Revenus_source_%C3%A9trangere_outre-mer.pdf.
  14. [quote user="Daft Doctor"]Oh yes, and of course a HUGE thank you to parsnips for providing the excellent template letter. Without that I'd be empty handed for sure![/quote] Hi,   Thank  you  for  that.    I  just  hope  it  works  as  well for me  as I still  haven't got  anything  back! 
  15. [quote user="woolybanana"]Parsnips, didn't you say that last year you had a phone conversation with a big tax 'cheese' in Paris concerning social charges who confirmed that they were illegal? Have you had a similar conversation concerning this year's charges, and if so, what did the 'cheese' have to say? Just a thought.[/quote] Hi,    The "big cheese" was on the end of the finance ministry "help line", and I phoned last december to test the water before selling a lot of UK shares ( which I then did before  30/12/2015).     He did not appear to be totally up to speed , but after consulting a colleague said that 2015 gains would not be subject to "social charges" but that, as from the following year they would be and it wasn't worth changing the forms, the procedure would be to declare as normal , and , on receipt of the avis , to immediately reclaim as in the last few years ,    I have submitted my claim , and have been informed that it has been forwarded to the legal department.  By the way , I have still not been reimbursed for the previous years .
  16. [quote user="Cathar Tours"]I was wondering that if you continue to pay these social payments if it might help you with healthcare when the UK leaves the EU?[/quote] In my opinion - not at all.   The "Social Charges" taken on investment income have nothing to do with access to health care , they are just a disguised tax , described as "social"  to try to fool the french when they were not happy with the level of conventional taxation.
  17. Hi,         Anyone who has been refused refund of 2016 charges on 2015 income should appeal first to the "Conciliateur Fiscal" and then , if still refused , to the" Mediateur "  see here;  https://www.service-public.fr/particuliers/vosdroits/F103          Send copies of  all correspondence and make the point about retrospectivity.
  18.   Hi,         No, you are not alone ;  I recently read a piece in (I think) Les Echos where the finance ministry acknowledged that they were taking a long time due to the volume of claims (and presumably lack of staff), and asked people not to contact them , as there would be no question of the delay constituting a rejection of the claims.
  19. [quote user="Chocfish"]Thanks, I've done a bit more research and it does look like these questions relate to form 2042-pro which is for declaring french income. All our accountant said about this was that this form was not necessary. Any other advice welcome while I craft a polite yet assertive email to the tax office ;-)[/quote] Hi,     Bear in mind that however you declare the rents they are exempt from all tax and social charges in France under article 8 and  24 of the convention of 2008. The important entry is 8TK on 2042. As your rents are less than 15000€ the simplest way to declare is to enter in sec 6 of 2047 with a note " micro-foncier ", and put on 2042 line 4 BE; and most importantly 8 TK.   Don't use 2042 C.    
  20. [quote user="woolybanana"]Are we claiming a rebate for the 2015 tax year? Does anyone know if the fisc have changed the rules so we pay or not?[/quote] Hi,  Very difficult to get a definitive answer to this ;  most sources seem to think CSG paid on 2015 income will be repaid , but the advice is - keep putting claims in for all future years as well , regardless of official announcements, as there are actions underway at the ECJ disputing the legality of what the french have done.  
  21. [quote user="pomme"]Is anyone who has received their CSG refund updating Section 6 Charges Deductibles: CSG déductible connue, calculée sur les revenus du patrimoine in the field in 6DE? If so, what figure are they inputting? I realised an investment last year and the line is currently showing a four-figure sum! I wonder whether the tax office will be checking before they calculate the tax due? And do you think the tax office will go back for previous tax years and recalculate the tax due if the field should be (close to) zero? [/quote] Hi,    I'm content to let the tax office worry about that!
  22. [quote user="Frailer"]I have a private UK pension and two UK OAP pensions (myself and my wife). I have entered the totals in 1AS and 1BS of the form 2042K  I have UK bank interest which I have entered in 2TR of the 2042K I have  entered the bank interest in Lines 222, 228 and 230 of the form 2047K I have interest from ISA's which I have entered in 2GO in form 2047K. To avoid  paying  (CSG etc)  in France on our UK OAP pensions, which box and on which form do I enter the totals of our two UK State Pensions? Finally  have I missed transferring any of the above totals to any other boxes on the forms? Thanks in anticipation for any help with these newly formatted Tax forms. John Watson Hi,     Bank interest should be entered at 2TR on 2047.  I think you should add to this the ISA interest also in 2TR.     As said send copy of S1 and put a note on the forms.     [/quote]
  23. [quote user="mint"]I, too, like many others on here have just had my letter allowing for my claim minus the 2% from which there is no ducking. I really don't mind how long they take to pay me back because I now know that they have agreed the sum. The next thing is to write back, thanking the guy and saying BTW, here are the social charges I'd like to claim back on our 2 French savings accounts.  One step at a time and anyway I hadn't had the statement about tax on savings when I first wrote to the impots. The purpose of this post is really to thank Parsnips for his invaluable guidance all along the way.  I feel like I have won the lottery as this is money that I hadn't expected to ever see again. Parsnips, thank you from the bottom of my heart! [/quote] Hi,     Thank you for your kind words.   If you have other claims for past years , don't delay , as the time for claiming is limited to the 2 years following the year the income was received.
  24. [quote user="pomme"]It is now six months since I submitted my claim in September 2015. Apart from acknowledgement of the documentation being transferred from the local tax office to the departmental office after three months, in December 2015, I have not heard anything. I've now e-mailed to ask if there has been any progress. But is there anything else I can do or is it still best just to wait?[/quote] Hi,     Same here ; I am going to wait a bit longer .  When they finally pay up , make sure to check they have paid " interet de retard ".
  25. [quote user="1eyedjack"]Hi, could someone please show me a breakdown of a simple tax calculation based on the facts below? I am familiar with the UK system, just not French. Hopefully these are all the facts needed: Widowed lady born Jan 1945, no dependants or other household members, British citizen resident in France (and only in France). Tax year 2015. 3 Income sources all arise in UK, but in Euros , gross amount to: UK state pension E15729 UK works pension E27940 UK furnished residential property letting E18419 Please ignore double tax credit relief for this purpose. Thanks. I am interested in a breakdown between Income Tax and Social taxes, and available exemptions, including a breakdown between tax rate bands. Thanks for any help and by all means let me know if there is something obviously relevant that I may have missed. And sorry for the lack of paragraph breaks. Can't seem to insert any.[/quote] Hi,      Pensions   43669 - (10% -limited to max.3707) = 39962 +18419 =58381......  notional tax due  (58381 x 0.30) -5639 = 11875€ *   This notional tax is reduced by the credit - 11875 x 18419/ 58381 =3747.... Tax due  = 11875 - 3747 =8128€       As an S1 holder there should be no social charges on the pensions , and the rent is exempt under the treaty.    Social charges may have been charged on investment income , but for 2015 income you can claim reimbursement. Does this help? *calculated using the "le Particulier " ready reckoner.
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