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Treatment of SIPPs, ISAs and PEAs


andyalan10

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So here is a nice simple one to start with:-

If we were to be French resident and hold SIPPs and stocks and shares ISAs my understanding is that the dividend income and capital gains within them "should" be declared. I guess I can calculate dividend income each year fairly simply, but for capital gains would that be triggered on the sale of each individual holding, or on the withdrawal of cash from the SIPP/ISA.

Also is it possible to run a French Plan d'Epargne en Action in a similar fashion, buying and selling individual shares within a tax sheltered account?

Many thanks in advance if anyone can help.

Andy
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We certainly bought and sold shares within the French PEA, without any penalties. You need to keep it for 8 years (I think) before you can take money out without tax implications. But, and its a big but, tax is nothing compared to the social charges which take a big slice of any profits you make, with no offset for any losses you make.

If I remember correctly, there are also complications about adding money, but the bank/advisor is better placed to explain.
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You would only need to declare interest/capital gains when they are realised. You do not have to declare the interest every year when you leave it in an ISA.

Possibly more importantly, you would need to declare the holdings on French tax form 3916 if they are foreign holdings the from first year you make a French tax declaration. If you don't do so and the French tax authorities discover you have them the fines are high - 1500€/account/year for accounts in countries which France has signed a tax agreement (10,000€ for non-convention countries).

https://banque.ooreka.fr/fiche/voir/571889/comment-declarer-un-compte-a-l-etranger
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