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French investment returns


Dj
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Hi There

We are retireing to France April 2nd,Has any one experience of any beneficial saving schemes

which allow tax free returns paid monthley,Similar to the Northern Rock Silver Scheme running in the UK.This offers a return of 5.10% Gross.

A further point,is the top up scheme or the mutual health scheme premiums allowable against your personal tax charge.

Thanks in advance DJ

 

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"which allow tax free returns paid monthley,Similar to the Northern Rock Silver Scheme running in the UK.This offers a return of 5.10% Gross."

Basically, No! The Codevi and Livret A are interest free at around 2.25% interest but limited to an investment of 4600€ and 15300€ per person.

As UK tax free schemes are taxable in France you should look into Assurance Vie's, see http://www.frenchentree.com/fe-finance/ .

"A further point,is the top up scheme or the mutual health scheme premiums allowable against your personal tax charge."

No.

You should be aware that whilst in the UK you pay income tax, here you pay income tax, social charges and health charges and top ups to health charges.

If you are arriving in France on April 2nd you really should seek proper financial advice beforehand!!!!
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As has been said a Post Office savings account like Livret A or LEP (Higher rate than L. A) has tax free interest with a limited max investment amount. Off-shore accounts like Nationwide Base Rate Tracker pay more (4.95%) for the first year but need to have interest declared for French taxation or buy a bond off-shore like CMI and sell units over the years, say every 3 months but again any difference between the price you paid and the value when sold is subject to French Income Tax. In LF there are financial advisors advertising their expertise in helping you (and themselves) in buying a helpful product................John
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  • 2 weeks later...

Thankyou  for your advices, I have no problem with the declaration of interest for my French

tax assesment .We will probably go to the Nation wide ,we have allways been satisfied with their services.

I would no more go to a financial advisor than fly to the moon on a dust bin.

All the best DJ

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"I would no more go to a financial advisor than fly to the moon on a dust bin."

Had I followed your advice I would be subject to 38% taxation (in it's various forms) as opposed to 9.87% after advice.

As for inheritance tax, easily minimised IF you take advice - but then again you may be more astute than your postings make out!

I simply cannot see any benefit in leaving your savings in any building society in the UK.

Please please please, do not waste your retirement money, seek advice and act upon it !!!!!!

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Before moving I contacted an IFA who advertises in LF. In fact I contacted then over a year before moving and was told to contact them “nearer the time”, then 6 moths – mo “nearer the time”, etc. then once I had sold my UK property and had three weeks to resign my job, move, etc. in I didn’t have time so I never did get any advice.

I offered to either pay up-front for the advice or to work on a percentage basis (whatever they preferred) and had significant cash capital – but got nowhere.

When I have talked to UK Financial Advisers I have fortunately never taken their advice for a variety of reasons. Some advice has been just daft (and time has shown it was), other advice not “cost effective”. When somebody wants to charge you 1% of your capital invested and cannot be sure of getting 1% higher return then e.g. with a Building Society then “what’s the point". It seems the only way they can improve on returns is to go for higher risk investments – yet their fee is based on the value of your capital NOT the income they manage to generate for you – so when they say “the value of your investment can go down” – they can actually can contribute to it’s descent.

We’ve seen Pensions become money down the drain (for many), Endowments “schemes” fail to meet anything like what they were meant to, etc.. so many “failed schemes” I do not feel inclined to trust my life savings to any of the schemes they come up with these days.

The above is however based on my experience of a limited number of IFAs. I’m sure people in different situations have had good advice and made money.

Also, the above relates to Investment Advice and NOT Tax Advice. I did discuss Tax Advice with a St James Place consultant and even they agreed that their charges would probably be higher than the money they would save me so again I never bothered.

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[quote]If you mean EUR vs GBP rather than France vs UK this thread might be easier to follow (and maybe more meaningful). John not[/quote]

In what context and which post(s) ? I cannot see many references to £ vs € or UK vs France (i.e. comparisons). If it was my quote, do let me know and I'll correct so things make more sense.
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Some very interesting points raised regarding F A .

My experiences involved a company called Barlow Clowes,

This company was registered with the F.S.A and yet still conned people out of their money

When we were interviewed by the serious fraud squad they stated the man in question should have been charged with murder as some of his clients were totally ruined and took their lives as a result, a very sad situation when one considers the body that controls these financial institutions are the same that all registered F.A are guided by.

A further point the concept of investing in a british building sciety was attractive in that it was in its off shore fund thus interest was paid gross and the due tax paid in the country of residence.

does that make it clearer Les

All the best DJ

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[quote]I1,I had much the same experience trying to get tax advice. I tried those people advertising in Living France, they didn't seem to want to know even before they had asked circumstances etc.[/quote]

If they advertise in LF but do not come up to scratch, for those that approach them, perhaps they should not be allowed to advertise in LF? However, would LF turn away advertising revenue for the sake of a few disgruntled readers? Assuming, of course, that LF has been informed of unsuitable advertisors.

 

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[quote]If they advertise in LF but do not come up to scratch, for those that approach them, perhaps they should not be allowed to advertise in LF? However, would LF turn away advertising revenue for the sake...[/quote]

I have spoken to some of the companies that advertise in the magazines and they have not been able to help, or interested in helping, me. However, plenty of other people have used the same companies and been perfectly satisfied. I would not wish to prevent those people getting useful advice, or to deprive magazines from advertising revenue, just because I do not like particular companies.

It's a very subjective thing, and being involved in magazine publishing myself I'm biased. But surely it's up to the potential client to decide if he/she wants to use a company rather than having publishers (whose expertise lies in magazines rather than investment and taxation matters) to impose arbitrary judgements based on one or two adverse comments.

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In my opinion there is a big difference between giving bad, incorrect, etc. advice and not giving advice. The company concerned did not give incorrect, misleading, etc. advice, just failed to be interested. Also, they did not mislead me by saying they would do something then failing to do it.

My financial situation is certainly of interest to other UK IFA’s so I don’t think their “lack of enthusiasm” was due to my inadequate funds, etc. In effect they are wasting advertising. If they want to “throw their money away” by paying for advertising and then not capitalising on the interest it generates then fine (their (questionable) choice).

Were they offering “faulty advice”, failing to undertake agreed actions, etc. I would agree about it being appropriate for them to be advertising (anywhere). However, I believe there are other organisations who monitor such things both from an advertisement perspective and from their work as an IFA (though on the latter they may “fall in a gap” as working in UK yet advising on France.

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  • 3 weeks later...

leslauriers, you were obviously given good advice regarding taxation in France would you be prepared to provide the name and telephone number of your financial advisor as I am currently looking for advice on our money and the best way for it to be invested.

thanks


 

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