Abbey International

[Polremy]

Has anyone out there any experience of investing with them? A friend who has been expat for many years and now is resident in france is having difficulty in finding somewhere to invest

and get a decent amount of interest. Thinking of Base Rate Tracker Term Account Issue 3. Are there any disadvantages we havent thought of?

I understand the above pays interest gross but that there is some new European Union Savings Tax Directive as of 1st July this year.

Any info would be appreciated. I know there are lots of financial wizards out there.

thanks.

[LesLauriers]

Quick thoughts on Abbey International Tracker Issue 3:

It is only a temporary solution as the account matures on 4th May 2006.

It is subject to French income tax at your friend’s highest rate plus social charges of 11%, or a deduction of 15% under EUSTD if not declared.

There is a fine of 500€ for each account a French tax resident fails to declare.

It is a sterling investment and therefore subject to the variation in exchange rates, within the last three years the £/€ has been at a high of 1.60 and a low of 1.37. It would not have to move by much to wipe out any benefit.

There are French tax efficient investments which produced 4.75% last year, that also avoid inheritance tax on up to 152k€ per beneficiary. Take a look at

http://forums.livingfrance.com/shwmessage.aspx?ForumID=279&MessageID=209478.