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Everything posted by parsnips

  1. [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]
  2. [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.
  3. [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! 
  4. [quote user="minnie"]Thanks all for your advice. I suspect that what Norman said is right. I, too, feel that I've read that somewhere along the line. I don't think marriage regimes were discussed with the notaire as we bought "en tontine" at the time (in total ignorance of other alternatives).[/quote] You are considered to be under 'separation des biens ', but I believe that under the Hague convention on marital rights,  if you were married after  1 sept 1992 , then after 10 years residence in France you fall automatically under the french 'regime legal' which is basically 50/50 for all assets acquired after marriage. If you don't want this you can make a simple notarised declaration for your UK regime to stay in place.      Ask your notaire to confirm , if this applies to you.
  5. [quote user="Blodwyn"]We want to give a garage that we don't use to a friend who helped us a lot when we were renovating our house, and in other ways. A notaire says if it's a gift, he'll have to pay 65% tax as a non-relative. If it's based on what we paid, that's an awful lot. He's already using the garage for storage. (It's not near our current house.) If we 'sell' it at what we paid, fees would bet 2000 euros. It seems to be impossible![/quote] Hi,  Why not retain ownership , but allow him to continue using it as he already seems to be doing? You could charge him a small rent if you wish.
  6. [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 .
  7. [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.
  8. 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.
  9.   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.
  10. [quote user="Spidworthy"]Yes that is certainly one option -- if we die at separate times. Our concern at the moment is more about what happens if both of us are run over by a number vingt-sept bus together, meeting our maker simultaneously.[/quote] Hi,       The viager would be a good option regardless of the sequence of dying.  If you each sell your parts for a pension plus a lump sum , you can put the lump sums into a french life assurance plan, with anyone you wish as beneficiary (tax free up to 152 000€ , provided you invest before age 70. - 30 500€ after that age)  the money remains available to you ,if needed.
  11. [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.    
  12. [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.  
  13. [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!
  14. [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]
  15. [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.
  16. [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 ".
  17. [quote user="Blodwyn"]I don't think we have deeds as such, but we have our copy of the contract the notaire produced when we bought the house. That notaire has now retired, and you may well find the same - if so, maybe the new one has the paperwork. Or is it stored centrally somewhere? You can go to the Mairie and ask who is the registered owner of any property. We did this when we wanted to ask about land adjoining ours.[/quote] Hi,       Two other possibilities    www.notaires.fr   may be able to find the original notaire,  or the tax office may have something - they would have some kind of record of the purchase for taxes foncieres and habitation.
  18. [quote user="Blodwyn"]Sorry to come back to the subject but I think my question is slightly different than the last one so I decided not to tag onto it. I thought the new inheritance law - that you can make a will according the UK law - only applied to residents of France. (Because the UK didn't sign the treaty). My friends' situation is: They live in England. The husband bought the French holiday home before they were married but although they jointly paid for it, it is in his name only. He has children from a previous marriage and I'm guessing they would be entitled to at least half the value of the house? My friend is worried about this, and a bit fed up as she made a large contribution to buying the house, her husband's children won't talk to her - and hardly ever contact their father even though he is seriously ill. Is there anything at all that can be done so the wife can inherit the French house completely?[/quote] Hi,    They must consult a good english speaking notaire .    The UK law thing is a bit of a red herring , as french real estate always passes under french inheritance law and taxes.    If she can provide proof of her financial contribution the notaire may be able to put the house into indivision proportionately.  I think the husband could give the house (or his part if in indivision) to the wife ; there would be notaires fees and possibly gift tax - 80 770€ tax -free , then usual family rates.  As all are UK resident , I don't think the stepchildren would be likely to bring or to gain a french court action to dispute the gift .    In any case , speak to a notaire.   
  19. [quote user="Sailingsally"]Hi I was just reading your above post and I ask if a French property is owned solely by the father and he dies - what percentage goes to the children and to the surviving wife? There are three children. Thanks[/quote] Hi,      It all depends on whether he has made a will or not.  Without a will it goes either all in life interest to the surviving spouse , with title to the children equally , or the spouse can take a 1/4 in full title with the rest to the children in full title .       See here ;    "Le règlement de la succession en présence du conjoint survivant Lorsque le défunt laisse un conjoint et des enfants qui sont tous issus de cette union, alors le conjoint survivant a le choix de recueillir : Tout en usufruitUn quart en pleine propriété S’il choisit l’usufruit, les enfants se partagent la nue-propriété à parts égales. S’il choisit le quart en pleine propriété, les enfants se partagent les trois quarts restants à parts égales. Lorsque le défunt laisse également des enfants d’un autre lit, alors le conjoint survivant n’a pas le choix et à vocation à recueillir un quart en pleine propriété." These conditions can be varied with a suitable will or "donation entre époux" , particularly useful if there are stepchildren.
  20. [quote user="mikeh"]Someone told me that if you let out your property in France it affects your CGT when coming to sell. Is this right? Can anyone point me in the direction of a guide to letting out your French home? Thanks in advance, Michael[/quote] Hi, As to the letting side , there are guides on various expat sites , this is a good one: http://www.french-property.com/guides/france/working-in-france/letting-property/intro/ Regarding CGT , if you are non-resident in France and a EU citizen-  and have been fiscally resident in France for at least 2 years at any time in the past, you can sell your second home free of french CGT provided it is not let in the year of sale and the year  preceding 01/01/ of the previous year . Art 150u Code General des Impots- See here; https://www.legifrance.gouv.fr/affichCodeArticle.do?idArticle=LEGIARTI000028426733&cidTexte=LEGITEXT000006069577&dateTexte=20140101&oldAction=rec"2° Au titre de la cession d'un logement situé en France lorsque le cédant est une personne physique, non résidente de France, ressortissante d'un Etat membre de l'Union européenne ou d'un autre Etat partie à l'accord sur l'Espace économique européen ayant conclu avec la France une convention d'assistance administrative en vue de lutter contre la fraude et l'évasion fiscales et à la condition qu'il ait été fiscalement domicilié en France de manière continue pendant au moins deux ans à un moment quelconque antérieurement à la cession. L'exonération mentionnée au premier alinéa du présent 2° s'applique, dans la limite d'une résidence par contribuable et de 150 000 € de plus-value nette imposable, aux cessions réalisées : a) Au plus tard le 31 décembre de la cinquième année suivant celle du transfert par le cédant de son domicile fiscal hors de France ; b) Sans condition de délai, lorsque le cédant a la librhCodeArticle"
  21. [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.
  22. [quote user="woolybanana"]Managed to have a fone chat to the taxperson in charge of the social contributions/expats files the other day. She reckons it will take another two months to get the files cleared as there are"a lot to do". Of course, she did not say if and how much, but at least it was some clear indication.[/quote] Hi,      The method for refunding CSG taken by banks and assurance cos is only now being sent to the tax offices, see this , up dated 05/02/2016; http://patrimoine.lesechos.fr/patrimoine/impots/021422612874-bercy-propose-aux-non-residents-un-mode-demploi-pour-se-faire-rembourser-la-csg-1167937.php#   This explains the on-going delay.   For CSG wrongly taken in 2015 (2014 income) the last date is  ,I believe , 31/12/2017.    I would recommend doing it now.  For the CSG taken in 2016 (2015 income) which will be declared this spring , I recommend claiming as soon as the avis is received , quoting the same justification as before (conflict with reg 1408/71) - regardless of what the authorities may say about it no longer being refundable.   Their latest moves will be challenged at the European Court.
  23. [quote user="Anna"]I sent a copy of Parsnips wonderful letter and took out the bits that were not relevant for our claim in Dec2015. I sent an attestation (dated 2007) Our E121's ( here I am confused because all they looked like were forms but with signatures from Newcastles office) .And we sent all paid CSG bills relating to said years. We received this letter below and because of giant language problems a French friend talked to the Author of the letter (see below please). It appears my errors are that the attestation should be a new one like of todays date rather than 2007! Also he said the E121 was in English so was of no use!! So is that why he wants a new attestation . He went on to say that he could not discuss anything else with my friend as he needs written authorisation, which is fare enough. I could cry, I just new it could not go smoothly. Please , I would appreciate it if someone could read his letter below, but because it was a pdf email I could not copy it so any spelling mistakes are my fault. What does your E121 look like , please? Do we need to ask for anything else at CPAM or will the new attestation imply are health is paid by UK? Thank you Anna here is his email Vous avez déposé une réclamation tendant à la restitution des prélèvements sociaux dus à raison des revenus de capitaux mobliers et des professions non salariées que vous avez réalisés au cours des années 2012, 2013 et 2014 en invoquantles décisions < de Ruyter>, rendues par ka Cour de Justice de l'Union européenne et par le Conseil d'État. Afin de permettre l'examen de votre demande, il vous appartient de justifier de votre affiliation à un régime de sécurité sociald'un autre Etat membre de l'Union européenne, de l'Espace économique européen ou de la Suisse au titre de la période sollicitée. A cet égard , vous pourrez notamment en justifier par la production: de tout document suffisamment probant indiquant de façon claire l'organisme de sécurité sociale de votre rattachement et la période d'affiliation; d'un justificatif de paiement des cotisations (bulletin de salaire mentionnant des retenues à titre de cotisations sociales ou titre de pension émanant d'un organisme de retraite publique, etc); je vous remercie de m'adresser, dans le délai de 30 jours, votre réponse accompagnée d'un relevé d'identité bancaire. je me tiens à votre disposition pour toute question relative à ce courrier et vous prie de croire, Madame, Monsieur, à l'assurance de ma considération distinguée[/quote] Hi,  The person who wrote that letter clearly doesn't know what he/she is doing; all you need to send is the 2007 E121.   All the stuff about the date , and language of the E121, cotisations and pensions ,is garbage.  The E121 is a single sheet, mostly empty, form (A4) with E121  and GB in boxes at the top right hand side. The fact that they have asked for a RIB seems to imply that they are going to reimburse at some stage. If you get any more nonsense find the details of the "Conciliateur Fiscal" for your departement ,and send copies of all correspondence to him asking for his intervention.   Do all your communication with the tax office in writing (email is best) so you have written evidence of their mistakes.
  24. [quote user="Visky"] Thank you very much Parsnips - I was aware of Blevins Franks take on this but it's good to see a french view in agreement. Having followed Blevin's earlier advice and cashed a Sterling investment in Dec 2015 (with tax payable 15 Jan 2016!), I'm really keen to find out the latest. The French property website doesn't seem to give a source for its latest info, so I was wondering if anyone had seen anything on a French government site to clarify this. [/quote] Hi,  It is difficult to find a clear printed confirmation of this , so as I posted previously I contacted the finance ministry , where a very helpful man told me that ,yes , the 2015 income would be exempt from contributions,but that it was unclear whether the declaration forms would be altered , or whether the contributions would have to be paid and then claimed back.  As the contributions are to be taken on 2016 income , the second procedure is most likely.  He did say that for the CSG which appears on the avis (on capital gains on investments for instance), you should not pay , but put in a claim and demand a "sursis de paiement".  He also said that they were working "from day to day" as different instructions came in quick succession. He did have to go away and consult with colleagues a couple of times. It occurs to me that a note and copy of S1 with the declaration might be helpful.   If you have any french LA euro funds , or taxable bank accounts , you will have to get details from the end of year statements, (or get printouts from the bank -CA did that for me for all the years in question.) , and claim for those also.
  25. [quote user="Visky"] Have I understood this right?  According to French Property website,  S1 holders will not be exempt from Social Charges on investment income earned in 2015. http://www.french-property.com/news/tax_france/social_charges_constitutional_council_ruling/ I haven't been able to find any other references to this - has anyone else any further info? [/quote] Hi,    Here is what Blevins Franks say; https://www.frenchentree.com/french-property/french-tax/social-charges-refund/   Also this from a french source ; https://www.facebook.com/cardeapatrimoineAM/posts/932169483538132 They both seem to say that CSG on 2015 income is reclaimable, but given the chaotic way the french do things , one never knows .   There is an appeal against the proposed re-imposition, brought by french deputies, going to the Conseil d'Etat and the CJE , and their advice is , regardless of what the government may say , keep on applying for reimbursement , and making sure (in writing ) that your claim is registered.   After 2016 , this could go on for years , but there is a good chance of a final good outcome -provided you claim within the time limits - by 31/12 of the 2nd year following the taking of the CSG. 
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