Hi Llantony, I'm afraid that it is your friend who is doing something stupid, as he will get caught and he will get penalised. As stated above, we now have the EU savings directive, which basically means all countries within the EU (and some countries not in the EU) now share all information. This includes bank accounts, savings etc. You are duty bound by law to declare your worldwide assets no matter where they are in the world; whether taxable or not, thus by leaving off any assets / income, you are indeed breaking the law in your new host country. ISAs are taxable in France as the French do not recognise their tax free status, no more than the British fiscal authorities would recognise a PEA (the French equivalent). If you arrived in 2008, then your first return should be put in by the end of May this year. You will not be sent one, you must go and get it, or download it from the government tax website www.impots.gouv.fr There are places that you can put money that are in Sterling and are tax efficient in France, switching into Euros when you wish, so missing the ‘livret A’ boat is not a problem.