Assurance Vie - Box 2CH or 2DH ?

[james_o]

Good afternoon

I'm trying to run a simulator for likely Tax & Social charges for a

withdrawal from an AV held for more than 8 years, and getting strange results.

If I enter a gain of 40k in Box 2CH I get a figure for tax of 4981 + CSG of

6200 (I'm guessing this is the marginal rate basis)

The same amount entered in Box 2DH (prelevement basis of 7.5%) gives a tax

amount of 345 and 0 social charges!

Brilliant as this would be, I can't see this being accurate somehow... I'm

using the "simplifiee" version I found here:

http://www3.finances.gouv.fr/calcul_impot/2015/simplifie/

Not sure what I'm doing wrong but I'd be grateful for some help!

 

Couple of further questions if I may: 

1)  The policy is in

my name only but I am married and make a joint tax return – would the abatement

be 4600 or 9200?

2)  Would Social charges still be

imposable for a holder of an S1?

 

 

[parsnips]

[quote user="james_o"]

Good afternoon

I'm trying to run a simulator for likely Tax & Social charges for a

withdrawal from an AV held for more than 8 years, and getting strange results.

If I enter a gain of 40k in Box 2CH I get a figure for tax of 4981 + CSG of

6200 (I'm guessing this is the marginal rate basis)

The same amount entered in Box 2DH (prelevement basis of 7.5%) gives a tax

amount of 345 and 0 social charges!

Brilliant as this would be, I can't see this being accurate somehow... I'm

using the "simplifiee" version I found here:

http://www3.finances.gouv.fr/calcul_impot/2015/simplifie/

Not sure what I'm doing wrong but I'd be grateful for some help!

 

Couple of further questions if I may: 

1)  The policy is in

my name only but I am married and make a joint tax return – would the abatement

be 4600 or 9200?

2)  Would Social charges still be

imposable for a holder of an S1?[/quote],

 

 

Hi,

   I assume from your question that you have not yet taken the

withdrawal;  if so you can opt for the prelevement forfaitaire before

taking it .  If you have already taken it you cannot apply it

retrospectively .  Is the 40 000 the actual gain or the total of the withdrawal?  Only the gain element is taxable.

For a married couple the full 9200€ abattement is given against the gain.  After you take the withdrawal the company should send you a form telling you the taxable amount and how to declare.

At present Social Charges apply to an S1 holder , but following a recent European Court ruling , the tax authorities are awaiting instructions on this.  If no action has been taken by about November , you are advised to claim back Charges paid in tne last 3 years.  See posts elsewhere on this and other forums.

   

[james_o]

Hi Parsnips, many thanks for the response - you are right in that I have not yet taken a withdrawal but am trying to work out the costs and implications of doing so this year (other stuff to take into account) - hence attempting to run the simulator and find out the figures first.

It would seem better to go the prelevement route and the double abattement amount is good news (you've settled an argument here!).. shame I can't seem to get the simulator to work properly - I'll keep trying, maybe with different amounts and report back if successful (I'm assuming Box 2DH is the right one..)

Thanks again