Taxes

[elamessa]

Hi everyone,

 

We will be moving to the Limousin/Burgundy in January 2009. I will be getting a Government Pension taxed in the UK my wife has a savings account where the interest is paid tax free because she below the tax thresh hold. What money would the French take tax out off? Your help would be appreciated and I am sorry if this question has been asked before.[:D]

 

Steve

[ams]

If she puts the savings into a french savings account, €15,300 is allowed per person, thus for a couple the maximum investment is €30,300. The interest earned is exempt from tax, social charges and CMU de base. called Livret A. Depending on cash requirements assurance de vie are also useful savings vehicles.

 

ams

[elamessa]

Ams, thanks for the reply. What happens if my wife leaves her investment in the UK account which is free of tax and we use it to draw on when and if required.

 

Steve

[BJSLIV]

You will pay 11% charges on any declared inerest. Plus any tax due once your total income has been aggregated and allowance made for tax paid on your pension in the UK.

 

[ams]

If she is resident in france, then she must declare the income in France. Depending on income, age etc the tax burden could be small or relatively large. If she is not in receipt of a state pension, then she would be liable to income tax at x% plus social security tax at 11% plus 8% for the CMU de base, again depending upon personal circumstances.

 

back to the football.

 

ams

[elamessa]

Thanks both for your replies.

Tax on CMU de base? Thought we wouldn't be covered by CMU or have I got it wrong?

Looks like we have some sorting out to do with regard income & tax before we cross the channel.

Well done to both Arsenal and Manchester for progressing in the Champions league.

 

Steve

ps got my COC for the Pan European so that one thing less to worry about[8-|]

[ams]

No and yes. As a result of the changes to health care in france, new early retirees can not access the CMU de base, however if they remain in france for 5 years they are allowed to join the CMU de base. It all very much depends on your circumstances.

 

ams

[elamessa]

[quote user="ams"]

No and yes. As a result of the changes to health care in france, new early retirees can not access the CMU de base, however if they remain in france for 5 years they are allowed to join the CMU de base. It all very much depends on your circumstances.

 

ams

[/quote]

 

This sounds complicated any chance you could explain a little more please, after all I'm a thick northerner and don't grasp things.[8-)]

 

Steve

[Sunday Driver]

Steve

The 8% mentioned by ams is not a tax on the CMU - it's the standard means tested contribution. 

As you will not qualify for admittance to CMU on arrival in France, the 8% will not apply to you.  However, once you have been in stable and legal residence here for five years, then you may apply to join the CMU and at that point, the 8% contributions will become due.

 

[elamessa]

Thanks SD,

Thats the kind of answer I was looking for (no disrespect to any of the other posters). Looking forward to making France our home.

Steve