French deposit accounts and tax

[Keith]

Dear All

Am thinking about opening a deposit account with Credit Agricole. We already have a current account with them and e-banking.

Could somebody advise as to the procedure with paying tax or not on the interest (I am resident in the UK and pay UK income tax)

Does anybody know the best sort of account to open?

Many thanks

[Ron Avery]

Not being funny. but the best person to ask would be an advisor at  Credit Agricole.  They know the accounts that qualify for tax relief. There are accounts only open to minimum rate tax payers and others that do not attract French income tax, so best to ask them and explain your circumstances.  Strikes me that with the dire exchange rate at the moment and UK interest rates being higher than in France you would be better off keeping your money in the UK.

[Keith]

Dear Ron

Many thanks for advice. I agree about the interest rate point but "they" say towards the end of the year the pound will increase in value.

Do these tax-free accounts apply to English tax payers and people who pay above the minimum tax rates in France?

Keith

[Ron Avery]

"Do these tax-free accounts apply to English tax payers and people who pay above the minimum tax rates in France? "

I would think not Keith, as to get the French tax relief, the bank has to stamp and sign your French tax advice.

I think there are grave financial risks in trying to compare savings accounts in two separate tax regimes, as we know a UK  ISA or PEP is no good to a French tax payer as neither is excluded from tax in France.  I would also be wary of advice from CA about what is tax free in the UK, they may well know about tax free accounts in France, but are hardly likely to know which are tax friendly in the UK.