Euro accounts, offshore accounts ?????

[Washy]

Help, we are running around like headless chickens. The first couple to see our UK house are buying it and want to be in by August 6th. Wel we did want the final push now we have lost of decisions to make regarding money.

Would like to hear from anyone who has moved permanently to France but still needed to keep some financial ties in the UK.

I ahve a current account in the UK into which I have arranged to have paid, pension, child benefit, incapacity benefit, industrial injury benefit. My thoughs are to open an offshore euro account to hedge my bets a little if the pound devalues pre entry into the euro. I will also have a considerable sum when the money from the house sale drops into the bank. Where to invest ? Can I hold ISA etc as a non UK resident? Interest rates in offshore accounts are not that much higher than high street banks. I will arrange to transfer uk money to offshore account periodically and then I will need to transfer it to France to live on. I know I will probably loose the incapacity benefit when I move.

Does this seem like a reasonable plan to anyone who has had this dilema themselves, or does anyone have any other suggestions ?

[Nanceric]

>I know I will probably loose
>the incapacity benefit when I
>move.
>
Go to http://www.dss.gov.uk/
and you can find out which benefits you keep and which you lose when you live abroad.

Sorry, can't help with the banking dilemma!

Sue

[0bill thomsonddMMyyyy0Falseen-USTrue]

>I ahve a current account in
>the UK into which I
>have arranged to have paid,
>pension, child benefit, incapacity benefit,
>industrial injury benefit.

Most of us keep accounts in the UK for such purposes

My
>thoughs are to open an
>offshore euro account to hedge
>my bets a little if
>the pound devalues pre entry
>into the euro.

That's entirely up to you, but look at interest rates. Most such accounts from major banks offer p*** poor returns

Can I
>hold ISA etc as a
>non UK resident?

If you are a UK taxpayer you can have an ISA. If not there is no point.

then I will need
>to transfer it to France
>to live on.

Transferring money between UK and France is an expensive and/or slow process depanding on which option you choose.

I
>know I will probably loose
>the incapacity benefit when I
>move.

There may (very unlikely) be a reciprocal arrangement for paymrnt of this benefit - ask your DSS office,
>
You are probably best off talking to a financial adviser, several of which advertise in Living France, though they are not really interested unless you have a large sum to invest immediately.

Bill



http://www.letheil.com

[martinetchris]

Washy

Firstly can I say I'm no financial expert - this is just our experience for what it's worth.

We (like many others in a similar position) retained our UK bank accounts when we moved to France, for UK based income to be paid into (it also enabled us to retain that all important relationship with our UK bank manager !).

Our happens to be with Bank of Scotland, who operate a good internet banking service, which we find essential (but most/all other banks do also) : http://www.bankofscotland.co.uk/

We also have an Offshore Instant Access Account (again with BoS) that we use to store money in until we need it in France. We use a sterling account, and try and transfer money to France as/when the Euro is relatively low against the pound. Whether you do likewise, or (as you plan) use a Euro offshore account simply depends I guess on whether you believe you will get a better exchange rate now or in future. Some articles we've read project a 10% fall in value of the pound when it enters Euro - but when is anyone's guess !

Transfers we do via internet banking - transferring from BoS Offshore account to Credit Agricole via CA's London branch. Takes about 7 days and costs about 13 pounds. BoS do also do direct transfers to France, which I should use - but just haven't found the time to investigate !

There are however 101 ways of transferring money - each of which seems to have its evangelists ! Ours just suits us !

Our understanding is that you can retain any ISAs you purchased before you became French resident (and retain UK tax exemption on them - but French tax may need to be paid anyway) - but you cannot purchase further ISAs once you've become French residents (but of course nothing to stop you buying the underlying Unit Trust/whatever investments).

We were actually advised to sell our ISAs before leaving UK and invest the money in French tax-efficient investments - but we didn't do so (mainly through lack of time again, but also following the golden rule of "only invest in things you understand" and we understand French investments even less than we do UK ones !)

For proper tax advice we use (and would strongly recommend) Pannell Kerr Forster (Guernsey) : http://www.pkfguernsey.com/

They also publish an excellent annual book "Taxation in France".

Hope some of above may be of interest - best wishes for your move !

Chris and Martin

[Iceni]

I intend to run my business based in the UK (Ltd Co) with a registered office in the UK and pay French tax. All my clients will be in the UK or Europe, very confusing at the moment but I have no doubt it will work itself out.

Di

http://www.iceni-it.co.uk