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Hi, 7yrs,10 months & 3 weeks from retirement. We're in the process of getting our affairs in order in the UK ready for moving to our home in Brittany come the Glorious Day.[:D]

I'll be 50 with a UK final salary pension, 2 kids at 20+yrs of age and a house in the uk to offload (or not) depending on aforementioned kids!

A number of questions arise (inheritance tax etc), most of which we will adress in the UK. I've just started to wonder about where to have my pension payed, where to be domiciled (keep a small property in UK thus staying on property ladder/ home for kids?)

Does any one have experience of such matters? I realise each case has to be judged on an individual basis and I fully intend to pay for proper advice. However, a pointer in the right direction/pitfalls/experiences would be interesting to read.

I live in Sheffield and would be interested in any Solicitors that can be recommended reasonably close by. 

Regards,[:)]

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Under the UK definition of Domicile, you will be domiciled in the UK. Where you are resident is a differnt matter and will affect where you are taxed. Where you have your pension payed does not matter if you were French resident as worldwide income is taxed, wherever it is paid.

If you talk to a UK solicitor then make sure that they are current in French affairs. I know someone here whos solicitor in the UK told him that he will always be UK domiciled (correct under the British definition) and will be OK with a UK will, (not necesarily correct).

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As soon as you move across to your French home (ie, take up permanent residence there), then you become tax resident in France.  You are also required to register under the french state healthcare insurance system and pay contibutions towards your health cover. 

Before the happy event, you should advice HMRC of the move so that they can amend your tax status and transfer your file to the Centre for Non Residents.  Once you've made your first French tax declaration, you can then have your future pension paid UK tax free and you can reclaim any UK tax deducted since your move.

You will also need to obtain a form E106 from the Pension Service.  This will exempt you and your dependents from having to pay state heathcare contributions for up to two years.  After that, you're on your own and have to pay your own way.  The state system will cover about 70% of your treatment costs, so you'll have to budget for a top-up policy to cover the shortfall.

You will find that your french tax bill will be much less than in the UK, but by the time you've added in your healthcare costs (NHS costs are covered by your UK tax) and top-up insurance, you should find yourself marginally better off taxwise in France.

In terms of inheritance, you can sort out the UK side yourself.  However, once you are resident in France, your French property becomes subject to French inheritance law which is more complex. Do a forum search for more information on this or check out the French Notaire's national [url=http://www.notaires.fr]website[/url].

 

 

 

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A question for Sunday Driver as you obviously know ,or know how to find out.  A visitor today,resident in France but ex Jersey, informed me that her French Notaire advised her that a Jersey will has precedent over French law on property in France. When I said, "I don't think so" I was told that the French Notaire had assured the visitor this was correct. I believe that if you die[not that I'm thinking of doing it just yet] in France,even your UK or Jersey or Global assets are all taken under the FRench inheritance laws.

Regards, and in fairly good health.

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I suspect your ex-Jersey visitor has misinterpreted the advice given by her notaire. 

Given that French inheritance law is principally designed to ensure that the deceased's French estate passes on through the blood line,  I can't imagine a scenario where this person dies and wills her French property to the St Helier cats home, leaving behind unsupported children to fend for themselves.....

 

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 I have just been reading the book by Blevin Franks, a Guide to Living in France. Very informative.

If you are married UK style, then you must arange and sign a Civil registration in France. This in effect counters the French succession laws and everything will pass to the surviving spouse with a very small tax bill. You must also have a French Will as well as an English Will (if you have property still in the UK) with each Will referring to the other. Mainly because the French don't take any notice of what your English will states and will ignore same.

The French also have a Wealth tax which you pay every year on your Worldwide assets over 750,000 Euros.  I am 55 and hoping to leave to France next year depending on what young son will be doing after UNI. Selling up hopefully to purchase the French property.

David

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" I have just been reading the book by Blevin Franks, a Guide to Living in France. Very informative."

Be careful with this book AFAIK, there have been some major changes to the French taxation system since it was first published.   Check the date of publication, if it before 2003 be VERY careful with it.

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On where to be paid.  I assume, that like us, your pension provider has a system whereby they can pay your salary direct into a French bank account?   We have two pensions between us and have one paid direct to France and one to the UK.  This is a useful position to be in and the ideal one if you can do it as there are advantages and disadvantages to both.

The pension which is paid into the UK goes into the Nationwide.  The great advantage there is that you can just stick your debit card into a cash machine over here and you get bank rate with no fees.  However, if this is the only source of finance, you need to make sure that you take cash out and pay enough into a French account to cover direct debits for Electricity, Healtcare, phone, etc., etc.  For this reason, we just use this for day-to-day living expenses such as food shopping etc and we use the card in shops for buying large items like electrical goods, building materials etc.

Our pension which is paid directly into the French account alleviates the above problem as it covers all our direct debits and pays the montly bills but it is slightly more expensive as the exchange rate used is the commercial rate.

So I would say, the direct to France approach is more convenient but more expensive.  If you opt to have your money  paid into a UK account you will certainly need a French bank account as well and top it up on a regular basis so that you can set up direct debits, get a French chequebook, and - perhaps most importantly - a French debit card for out-of-hours petrol stations!  If you can do both - as we do- even better as you get the best of both worlds.

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