French Frank Posted October 27, 2009 Share Posted October 27, 2009 Can someone advise me on this please.If I have x amount in a bank account in the UK which generates interest of say 10k will I be taxed on this if I transfer it(interest) to a French account, assuming it is under the tax threshold in the UK? Link to comment Share on other sites More sharing options...
minnie Posted October 27, 2009 Share Posted October 27, 2009 If you are (become) resident in France you'll have to declare the interest on your French tax return come what may. As a resident you are subject to the French tax laws and so it is irrelevant as to whether the interest is a consequence of a UK or French bank account. Link to comment Share on other sites More sharing options...
Mikep Posted October 27, 2009 Share Posted October 27, 2009 If you're resident in France (at its simplest, if you spend more than six months in a calendar year in France), you should be registered for, and pay, French income tax and social contributions on all your (worldwide) income.That includes interest received in UK or anywhere else.However, you should be able to get the interest paid gross in UK, so it's only taxed once.The good news is that (certainly in our case, married with pension income) tax rates are lower - our top marginal income tax rate is only 14%, and there are no socialist charges on pension income received, although interest and dividends do get hit with an additional 12% of these charges.If you're not resident, it doesn't matter what you do with your money - but bear in mind that residence is not optional - it's determined by where you spend your time (plus sometimes other factors as well). Link to comment Share on other sites More sharing options...
5-element Posted October 27, 2009 Share Posted October 27, 2009 Are you a French resident? If you are, it doesn't matter how much you transfer, you will be taxed on all of the interest generated, whether it stays in your UK account, or comes over here. Link to comment Share on other sites More sharing options...
French Frank Posted October 27, 2009 Author Share Posted October 27, 2009 Thanks,Is there a threshold below which the earnings from savings are not taxed? Link to comment Share on other sites More sharing options...
bigears Posted October 27, 2009 Share Posted October 27, 2009 hiforget the 6 months, in practice you only become french resident when you declare yourself as such. Come back ron all is forgiven, this forum is dead without you. Link to comment Share on other sites More sharing options...
Bob T Posted October 27, 2009 Share Posted October 27, 2009 [quote user="bigears"]hiforget the 6 months, in practice you only become french resident when you declare yourself as such. Come back ron all is forgiven, this forum is dead without you.[/quote]Do you really believe that? Link to comment Share on other sites More sharing options...
parsnips Posted October 27, 2009 Share Posted October 27, 2009 Hi, If your only income is say 10 K £ ( 11K €) then (if you declare as a french resident), you will pay no income tax (even as a single person), and only 12.1% social charges . Once you arrange to have the interest paid gross in the UK (this may take some time --but will be back-dated) you will be better off by 20%-12.1%. By the way--where is Ron? Link to comment Share on other sites More sharing options...
Maricopa Posted October 27, 2009 Share Posted October 27, 2009 [quote user="parsnips"]By the way--where is Ron?[/quote]See here. Link to comment Share on other sites More sharing options...
French Frank Posted December 8, 2009 Author Share Posted December 8, 2009 Thanks Parsnips, you say that there is a threshold below which I would'nt pay tax, do you know exactly how much/ Link to comment Share on other sites More sharing options...
AnOther Posted December 8, 2009 Share Posted December 8, 2009 Similar to in UK in France you have personal allowances before being libel to tax. The amount will very depending on personal circumstances, for instance in France both husband and wife are entitled to an allowance even if there is only one wage earner, plus you also get an allowance for children.Parsnips will probably be able to give you the numbers but in the meantime try Googling French income tax allowancesBe careful about 'managing' your income to stay below tax thresholds as it could take you below the level required to be legally resident. Also if you are seen to be living beyond your declared income difficult questions could be asked. In any case, because you have to declare any UK bank accounts when you do your tax return, and the French tax authorities DO talk to UK, there is no hiding place for your UK interest. Link to comment Share on other sites More sharing options...
parsnips Posted December 8, 2009 Share Posted December 8, 2009 [quote user="French Frank"]Thanks Parsnips, you say that there is a threshold below which I would'nt pay tax, do you know exactly how much/[/quote]Hi, On 2008 income the tax-free limit was 11 726€ (single person) and 17 659 (couple) , with quite low tax up to 15540€ (single) and 24926(couple). You would be charged 12.1% social charge on the full amount of the interest. Link to comment Share on other sites More sharing options...
Alex H Posted December 9, 2009 Share Posted December 9, 2009 [quote user="AnOther"] as it could take you below the level required to be legally resident. .[/quote]Interesting, what is the current level? Link to comment Share on other sites More sharing options...
AnOther Posted December 9, 2009 Share Posted December 9, 2009 For 2008 it was:Single person - 440,86€ pmCouple - 661,29€ pmSee this thread for more:http://www.completefrance.com/cs/forums/6/1170362/ShowPost.aspx#1170362 Link to comment Share on other sites More sharing options...
oldgit72 Posted December 29, 2009 Share Posted December 29, 2009 "On 2008 income the tax-free limit was 11 726€ (single person) and 17 659 (couple) , with quite low tax up to 15540€ (single) and 24926(couple). You would be charged 12.1% social charge on the full amount of the interest."I thought the tax free amount (per part) is around 5800 euros. Where does the 11726 come from for a single person and 17659 for a couple? Link to comment Share on other sites More sharing options...
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