wealth tax

[windturbines]

can anyone enlighten me on 'wealth tax'. from what i've read it sounds like I have to pay alot just because I have some world wide savings..

[BJSLIV]

 It only applies once the family assets are above 750,000 euros.

Tranches de fortune nette imposable	Taux d'imposition
Jusqu'à 750 000 €	0,00 %
De 750 000 € à 1 200 000 €	0,55 %
De 1 200 000 € à 2 380 000 €	0,75 %
De 2 380 000 € à 3 730 000 €	1,00 %
De 3 730 000 € à 7 140 000 €	1,30 %
De 7 140 000 € à 15 530 000 €	1,65 %
Au-delà de 15 530 000 €	1,80 %

More at

http://www.lesechos.fr/patrimoine/guide/FIS33.html

[smudger]

But if Sego gets in, it'll be much higher.

[powerdesal]

[quote user="windturbines"]can anyone enlighten me on 'wealth tax'. from what i've read it sounds like I have to pay alot just because I have some world wide savings..

[/quote]  

If you are going to "have to pay a lot" I will be willing to help you reduce your tax liability to zero by taking the balance above 750,000 E off your hands - I wont even charge a fee   [:D]

[Clair]

I'm willing to sacrifice myself for your financial peace of mind too... [Www]

[Nearly Retired (I am now)]

If your family assets comprise a 3 bed semi in a posher part of Britain and you have a small pension fund or savings paying maybe £5-£10k income a year, i.e. say, a total of half a million quid, then you'd be paying close to £3000 wealth tax every year. That's an awful lot of tax for a very ordinary situation in South East England transported to a life in France.

[allanb]

[quote user="Nearly Retired"]If your family assets comprise a 3 bed semi in a posher part of Britain and you have a small pension fund or savings paying maybe £5-£10k income a year, i.e. say, a total of half a million quid, then you'd be paying close to £3000 wealth tax every year.[/quote]How do you work that out?

If £500,000 is roughly equivalent to €800,000 (which is on the high side), then the tax would be 0.55% on €50,000, which is only €275.  And that's before deductions - I believe you can deduct 20% from the value of the house you live in.  So if your €800,000 includes your house worth €300,000 or more, you wouldn't have any tax to pay.

[powerdesal]

[quote user="Nearly Retired"]If your family assets comprise a 3 bed semi in a posher part of Britain and you have a small pension fund or savings paying maybe £5-£10k income a year, i.e. say, a total of half a million quid, then you'd be paying close to £3000 wealth tax every year. That's an awful lot of tax for a very ordinary situation in South East England transported to a life in France.[/quote]

Sometimes I really wish that I was "ordinary"

[Apero]

[quote user="powerdesal"][quote user="Nearly Retired"]If your family assets comprise a 3 bed semi in a posher part of Britain and you have a small pension fund or savings paying maybe £5-£10k income a year, i.e. say, a total of half a million quid, then you'd be paying close to £3000 wealth tax every year. That's an awful lot of tax for a very ordinary situation in South East England transported to a life in France.[/quote]

Sometimes I really wish that I was "ordinary"
[/quote]

Ditto[B]

 

[Nearly Retired (I am now)]

I take it that you two don't live in and have no knowledge of SE England in any place say 50 miles from London. Semis round my way go for £400k and are full of young families often with a non-working mum - and no, I don't know how they do it either. I have heard some have interest only mortgages and are relying on an inheritance to pay it all off in the end.

PS I didn't know about the 20% reduction for the house you live in - but still stand by my arithmetic and it's still a lot of tax.

 

[BJSLIV]

but I still stand by my arithmetic

But unfortunately your arithmetic is wrong because you don't pay anything on the first £0.5 million.

[allanb]

Maybe you calculated the tax at the quoted rate on the whole value of the assets.  This is wrong: each rate applies only to the corresponding slice of the value.  So if the total is €800,000 (ignoring any deductions), the calculation is:

- on the first €750,000: rate = zero, tax = €0

- on the next €50,000: rate = 0.55%, tax = €275

So it's not as bad as you thought.

By the way, I don't claim any special knowledge of SE England.  The "half-million quid" was your number, not mine.  I rounded up the euros a bit to take the amount above the zero-rate limit.

[Nearly Retired (I am now)]

OK - it's nothing as bad as I thought. I didn't know that the first €750000 was exempt, nor that an allowance for your home was made. In this case it really is a wealth tax which can't affect too many people.

I've learnt something new and maybe others have too - that's the beauty of fora such as this. To regain some credibility, I re emphasise that my arithmetic was correct - the assumptions were wrong.

[Suze01]

[quote user="Nearly Retired"]

In this case it really is a wealth tax which can't affect too many people.

[/quote]

Some ISF stats for the departements in the Aquitaine region for 2005 (from an article in Saturday's SudOuest):

1st figure = No de declaration imposables

2nd figure = Paiements recus (millions d'euros)

Gironde 7781 - 53

Pyrenees Atlant. 3898 - 21

Charente Maritime 3656 - 19

Landes 1662 - 11

Dordogne 1640 - 9

Charente 1326 - 8

Lot et Garonne 1286 - 7

Gers 650 - 3

[Sunday Driver]

Charente and Charente Maritime are both in the Poitou-Charentes region.

So much for journalistic accuracy.....[;-)]

 

[Suze01]

To be fair, it was headed L'ISF dans les Departements rather than "in Aquitaine".

[Pierre ZFP]

I can see lots of complications here. What if:

1. The value of your assets (say market value of house) drops below the threshold one year, do you get a rebate from previous year?

2. Who determines the value?

3. If your million euro chateau is in the joint names of yourself and OH, does that mean 0.5 mill each and therefore no tax?

 

Ah the list goes on..... perhaps I should've been a tax lawyer..........Nah!

[allanb]

Sadly, my wealth is such that these questions are not relevant to me, and I don't know the answers.  I'll make a guess on no. 1*, though; I expect the tax is assessed for each household (foyer).

But I can't imagine that these are 'complications' : I would bet that all the answers can be found in the government's publications or websites.

* edited: sorry, I meant 3.  Not that it matters now.

[LesLauriers]

1. No.

2. You.

3. No.