income from uk

[nicknshaz]

Has anyone experience of living in france with an income generated from uk investments, and can they advise of any pitfalls they experienced.

thanks.

[LesLauriers]

[quote user="nicknshaz"]Has anyone experience of living in france with an income generated from uk investments, and can they advise of any pitfalls they experienced.

thanks.

[/quote]

Count on ,11% social charges plus income tax plus 8% health charges (if under retirement age) plus wealth tax (if total worth over 750k€).

[billy10]

Just seen Leslauriers reply , but that only applies if you have taxable income above the French tax allowances , for instance it is my understanding that if you calculate all of your interest plus any other income you may have coming in from UK , divide it by two if you are married , counts wholly if you are not married and provided it is not above your allowance then you will not pay tax, you will pay tax on a sliding scale for anything above the allowance starting at 6 percent.

If you have moved totally to France then I believe that you are entitled to 2 years in the French health system provided you register as resident on or shortly after the first Sunday in January and all you will need is a top up insurance which are widely available and are a matter of choice as to what level you want.This will enable you to regain approx 70 percent cost back from goverment plus remainder back from your insurance.

For a lot of Brits this all works out well as most people live on interest supplimented with Capital (capitol although you must declare the capital the only part that is taxable is the interest and then only if it is above your allowance, this system is great for people who have retired early and are not yet in possession of a UK pension, of course after your two years it all changes and then you are in for social charges and 8 percent of your taxable income , however with careful planning this can be catered for to a minimum requirement. It all depends on your available funds and how much of it is disposable and taxable

It is also my understanding that UK Government pensions are still allowed to be taxed in the UK , however , having looked at my own situation for me it is better to declare it in France and pay tax on it in France as I would pay less than I would in the UK. 

The whole thing is not rocket science if you get on the net and find out what your allowances are and calculate your own situation on the premise that everything above your allowace is taxable on the sliding scale as set out by French government.

If anyone on Forum knows different please let me know as I have spent a lot of time researching the financial situation and would appreciate any alternative advice

 

 

.

 

[LesLauriers]

Billy 10

The 11% social charges are paid on unearned interest from the first £1 earned.

The first 5500€ is tax free per adult plus 2750€ per child after which you pay 5.5%. (simplistic view of the parts system).

The "first Sunday" may well help determine the time your E106 will run, however it is your NI payments record in the years prior to requesting the E106 which dictates wether or not you will qualify for the full two years.

The term UK Government pension is normally used to describe a Police, Armed Forces, Civil Service type pension and this can only be taxed in UK.

State Old Age and private pensions can only be taxed in France.

Your "Capital" can be taxed if your total worth is greater than 750000€. Total worth is everything down to the value of your teaspoons, though there are some exceptions  like art  & antiques.

You can, through French investments, pay no tax at all on the interest until a withdrawal is made, at which time it is tax advantageous. Do a search on Assurance Vie.

[nicknshaz]

many thanks for the info, need to do a bit more homework i fear,

[Cassis]

[quote user="Leslauriers"]

You can, through French investments, pay no tax at all on the interest until a withdrawal is made, at which time it is tax advantageous. Do a search on Assurance Vie.

[/quote]

Just to add - but note that you have to tie your money up for a period of years to get the tax breaks.

[LesLauriers]

[quote user="Cassis"][quote user="Leslauriers"]

You can, through French investments, pay no tax at all on the interest until a withdrawal is made, at which time it is tax advantageous. Do a search on Assurance Vie.

[/quote]

Just to add - but note that you have to tie your money up for a period of years to get the tax breaks.

[/quote]

Depends what you call a tax break - yes the tax breaks  improve over time but it is tax advantageous ( in theory) almost from day 2, and certainly after a year.

[nicknshaz]

does anyone know if uk funds/shares can be held in an assurance vie, thanks.