Lump Sum Tax?

[Pangloss]

Hi there!

We are shortly moving to France to live and are considering cashing in an endowment. Whether or not we do it now, at some point we will receive a lump sum. There would be no tax to pay if we receive the lump sum whilst resident in England. The question is, if we are resident in France at the time that we receive the lump sum, will it be taxed in France?

[Bugsy]

This has been discussed recently,have a look here

http://www.completefrance.com/cs/forums/1134755/ShowPost.aspx

[krusty]

Is not the lump sum from an endowment different from the lump sum from a pension ?

this quote taken from another forum....it is always difficult to find a correct answer on these forums ....it will be best to go to a tax office to see if this quote is correct.

quote "Went to the Centre des Impots today and the ruling is that as long as the policy was taken out before 1991 and the insured is under 70 at the time of starting the policy, there is no tax to pay in France when the policy matures or is surrendered.   That made our day!!"

[bigears]

hi

This was one issue amongst others that made us decide to stay UK resident for now and just enjoy our french property as a maison secondaire.  Unfortunately I haven't got an answer for you about the endowment.  If you are playing with a sizeable amount of money, please don't just accept what you are told on forums such as this, because you like the reply, get it checked out.  Just because its tax free in the UK, it doesn't mean the french taxman sees it that way. Beware also of frozen pension lump sums and ISA interest.  Good luck.