do uk annuities count as rentes viageres?

[Wannabe]

Does anyone know if a UK bought annuity would count as a "rente viagere" to the French taxman and get 30% deduction before income tax is applied? (beneficient resident in France)

 

[Teamedup]

I think you should ask an accountant, or the tax man. When you say 30% do you mean those reductions at the beginning of the tax declaration? as that isn't 30%.

[LesLauriers]

[quote]Does anyone know if a UK bought annuity would count as a "rente viagere" to the French taxman and get 30% deduction before income tax is applied? (beneficient resident in France)[/quote]

My understanding is that they do and that the reductions are as follows;

Under 50 - 30%

between 50 and 59 - 50%

between 60 and 69 - 60%

over 69 - 70%.

Also these reductions apply only to the annuity, the normal 10% then 20% reductions apply to earned or pension income as opposed to annuity income.

My advice would always be to PAY for professional financial advice prior to coming to France!

 

[Quillan]

If you stay in France for 120 contiguas days or more you are obliged by French law to complete a tax return as you are classed as a resident. The norm appears to be that the French will give you back the tax you have paid in the UK and then calculate your tax in France. I believe in France you receive tax relief on pensions paying out as opposed to the UK where you get it on the money paying in so technically you will be much better off (well in theory anyway).

[colac]

I wonder whether anyone would know about my situation. I have recently been diagnosed with Rheumatoid arthritis which I am told may get better if I move to warmer weather. Unfortunately it has forced me to give up my previous occupation and look for something to retrain in.

Luckily my UK accountant had the foresight to recommend that I take out a Permanent Health insurance policy otherwise known as Income protection years ago. My accountant informs me that the benefits are tax free in the UK- which I find amazing- but I am not going to argue with them! One option for me is to move to the south of France to see how my RA responds to the warmer weather.

The problem is if I move to France - which I am contemplating, not only am I taxed (which is fine) but I am told I may be subject to over 50% social security charges! This sounds unbelievable to me.

My question is does anyone here think that this would be the case? I have been told by a neighbour that a book by Charles Parkinson is good and that from memory that my income would be considered rentes viageres? Does this sound correct? She even thinks that I may be exempt from social security charges.

If anyone has a similar situation or has some suggestions I would be very grateful