CMU PAYMENTS

[Dc]

Does anyone know if CMU payments from investment income are based on the gross figure or after deduction of  social charges (11%) or what?????? All our income is investment income but not enough to pay tax in the UK but I am worried that with the social charges etc that I will be worse off here in France. Any help greatly appreciated and if anyone knows of any english speaking help lines that would be useful.

regards

dc

[LesLauriers]

It is based upon your RFR which is your taxable income after allowances, however there are no allowances against investment income unless you have French approved investments. Social charges are not deductable but  a percentage of that which is paid will reduce your RFR in future years. Yes under certain circumstances a traditional UK investment income will render you worse off in France, so it is worth considering where you want to live! If it is France then you need to remodel your investments to suit. Remember anything tax free in UK is taxed here and subject to social charges, apart from lottery wins.

[Dc]

I am afraid its a bit late as I now live in France, I don't recall seeing any of these problems being mentioned on all the English TV programs. It would appear that I will be considerably worse off here in France than the UK, especially if I tell the truth. Surely I am not alone in this situation, what does everybody else do?

dc 

[LesLauriers]

Tell the truth and change to French investments. It's a bit late in the day to become dishonest!

There are tax free investments in France and highly tax advantageous plans too, last year I earned a reasonable amount of interest and paid no tax or social charges - but then again I did not make a withdrawal.

[Quillan]

[quote user="Dc"]

I am afraid its a bit late as I now live in France, I don't recall seeing any of these problems being mentioned on all the English TV programs. It would appear that I will be considerably worse off here in France than the UK, especially if I tell the truth. Surely I am not alone in this situation, what does everybody else do?

dc 

[/quote]

Theres quite a lot they don't tell you on these programs and not just about France. You also need to be aware that what they do tell you can be out of date especially if you watch anything other than current ptograms. We still have people turning up looking for a 20,000 Franc house with pool [:)] .

The programs and even the books that you can buy are often missleading or out of date and you also need to know it can differ from one region to another. My licence for my B&B is free for me but others in some aeas have to pay for it, it's just how the civil servants in your area interpret the rules.

Unfortunatly CMU, well to be correct it's thre tax's CSG, CRDS and Prél, Soc. et Cont. Solidarity, is paid on virtually every form of income. I believe they are to pay for the deficit in some areas of the French system mainly the health service. They were supposed to be for just a few years but there is no sign of them stopping and if anything I believe they are going up a little. You will pay this on your income even if it is below your normal tax threashold. My bank collects this at source, it's only paid on the interest and you get a statement every year which says the amount paid and gives you the number of the box in which to insert the amounts on your tax return.

[LesLauriers]

[quote user="Quillan"][quote user="Dc"]

I am afraid its a bit late as I now live in France, I don't recall seeing any of these problems being mentioned on all the English TV programs. It would appear that I will be considerably worse off here in France than the UK, especially if I tell the truth. Surely I am not alone in this situation, what does everybody else do?

dc 

[/quote]

Theres quite a lot they don't tell you on these programs and not just about France. You also need to be aware that what they do tell you can be out of date especially if you watch anything other than current ptograms. We still have people turning up looking for a 20,000 Franc house with pool [:)] .

The programs and even the books that you can buy are often missleading or out of date and you also need to know it can differ from one region to another. My licence for my B&B is free for me but others in some aeas have to pay for it, it's just how the civil servants in your area interpret the rules.

Unfortunatly CMU, well to be correct it's thre tax's CSG, CRDS and Prél, Soc. et Cont. Solidarity, is paid on virtually every form of income. I believe they are to pay for the deficit in some areas of the French system mainly the health service. They were supposed to be for just a few years but there is no sign of them stopping and if anything I believe they are going up a little. You will pay this on your income even if it is below your normal tax threashold. My bank collects this at source, it's only paid on the interest and you get a statement every year which says the amount paid and gives you the number of the box in which to insert the amounts on your tax return.

[/quote]

Quillan, CMU is the health charge of 8% of RFR after an allowance of 6965€ and is paid in addition to Social Contributions ( CSG, CRDS & PS). It is paid by those expats who are pre UK state retirement age and who do not work in France. Social charges rose by 10% a year ago and there have been no rumblings of any increase this year.