Medical retirement – taxes

[Evo]

What taxes will we be expected to pay?

I would be very grateful to know or hear from someone in the same position – I have scanned a few forums and so far I haven’t come across anybody who is. I assumed that we would be taxed on all income then we would have to claim back through an FD5 form but have been confidently told by somebody that because my husband is in receipt of an E121 form we will not be taxed on all income.

Our position is as follows:

My husband is 60 in April has been medically retired by his company in GB for 18 months, has an E121, he receives the following:

• A monthly Permanent Disability Benefit/Pension from his employers paid into GB bank. This is taxed and NI are paid in GB, along with a deduction for pension contributions. £13,325 before deductions
• Incapacity Benefit – Received monthly from Newcastle, paid into French bank. £3463 untaxed.
• Pension – opted to take one of his company pension early. This is paid into GB bank and is taxed. £3209 before deductions.

I am a civil servant and am taking a 5 yr unpaid career break. (20 years full time until break started on 27/12/03.) I have an E106.

We moved permanently in Jan 2004. We have paid taxe fonciere and are awaiting our taxe d’habitation bill.

Grateful for your help.

EVO

 

[Teamedup]

You will need to do your french tax declaration for 2004 in around March 2005. You will have to get a tax declaration from your local Mairie or at your Hotel des Impots. The french tax inspectors will help with these forms and I would go and see them as soon as these forms are out, they do get very busy.