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Tax allowances on International with profit Bond?


milkeybar kid

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Please , has anyone been through this scenario and can advise on charges and tax allowances  .

Re investing an insurance with profit bond but keeping the interest that was made over the 6 years. This Bond was taken out whilst an offshore resident.

Also,are there any tax allowances as re: the article in the threads for dividens - will the same allowances apply ? I am aware that if u were UK resident each spouse would be allowed £9,000.00 allowance against the capital gain for an international profit Bond. MBK[blink]

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  • 2 weeks later...

According to Art 150-0 A of the code général des impots, there is a tax free disposal limit for capital gains on investments of 25,000€ .  After this, the figures are 18% CGT plus 11% social charges = 28% of the gain. 

Details are also mentioned in this [url=http://www.pkfguernsey.com/latest/72.pdf]French Tax Bulletin[/url] which is regularly published by PKF Guernsey, who are generally considered to be ultra reliable in terms of tax advice.

 

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It depends very much on the value of the investment. If you sell the bond for under €25,000 then no taxation is payable on any gain. If you sell and the proceeds are over €25,000 then you will be taxable on the full gain.  I assume that the investment is made up of units that can be sold piecemeal, thus with a little planning one could reduce the impact of some of the "taxes" over time.

 

Since January 2006 the government has introduced a progressive reduction in CGT thus after 8 years no CGT is payable.

 

The social tax is payable on all gains at the rate of 11%.

 

Depending on your circumstances and additional 8% of the gain may be payable in respect of health costs.

 

I would suggest a visit to the local hotel des Impots would be a great help.

 

ams

 

 

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