When it comes to paying tax, for UK expats in France, it can sometimes seem like a complicated process with rules for this and that. We answer some of the most common questions that UK expats ask when it comes to tax in France.

Question: I moved to France last year. I have a teacher’s pension and state pension which are taxed in the UK. Does that mean I don’t have to complete a tax form in France?

Answer: You have an obligation to complete a tax form in France now that you are resident here. For the current tax payment year you need only complete for the portion since the date you arrived. The tax forms aren’t available until April/May of each year and then the response from the tax office is due by August of each year.

You must list all of your income on the tax return and the Double Taxation Treaty between the UK and France will dictate whether it is taxable or not. In this case the UK state pension is taxable in France. Your teachers’ pension remains taxable in the UK.

The teachers pension must be listed on your French tax form, but you will receive a credit for tax already assumed to have been paid.

You will currently receive a tax allowance in France as well as a tax allowance in the UK.

During the time that you transfer to France and set up the administrative processes. There may be a period where your state pension continues to be taxed in the UK and this can be reclaimed using a specific form https://www.gov.uk

The downside is you can’t have this form certified until you have a tax reference number known as a ‘numero fiscal’ issued by the French tax office. Completion of the p85 form to confirm to HMRC that you have left the UK isn’t enough to get the changes made.

This question was answered by Financial advisor Jennie Poate at Beacon Global Wealth

If you have a question about tax in France, feel free to contact Jennie direct with no obligation.

The information on this page is intended only as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI).All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licenced and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B

The post I’m an expat in France with a UK pension so where do I pay tax? appeared first on The Good Life France.

We speak to Jennie Poate, Financial Advisor at Beacon Global Wealth about the sometimes complicated regulations for expats who have pensions and want to move to France. One of our readers wanted to know what to do with a lump sum from a UK Pension and Jennie took us through the possibilities.

Helping you enjoy living the dream in France…

What to do with a pension lump sum as an expat in France

Question: I have about £100,000 lump sum from my pension in the UK. When I move to France I wonder if there is a savings account or vehicle that I can put my money in that will pay me interest?

Answer: As a UK tax resident, you can draw 25% PCLS or Pension Commencement Lump sum tax free.

However, as a French resident you have an obligation to declare the income and pay tax on it. There are several ways this can be taxed but the usual is that a 7.5% fixed rate tax would be levied plus a now new 7.1% CSG or ‘social charge. So, if you move to France before you effect the drawdown, on that basis, already £14,600 is payable in tax. There are other ways this can be paid so check with your accountant or adviser as to the best route.

It would be prudent to keep some funds in an ‘emergency’ account running alongside your current account so that if for instance the boiler breaks down you have instant access to funds.

There are several tax-free bank deposit accounts; the nearest equivalent being a cash ISA. The interest rate is a government set rate currently (June 2017) 0.75%. There are two types of account and you can hold them both:

Livret A: in which you can place a maximum of €22,950 per person plus accrued interest

Livret de Développement Durable: In which you can place a maximum €12,000 per person plus accrued interest.

All banks and the post office offer them. They aren’t spectacular at giving you interest but keeping a level of available cash is always a good idea.

With the remainder of the cash, there are several things to consider. Do you want income? If so how much? Do you want a nest egg?

If you are investing more than €30,000 and are under the age of 70, then the following option could be considered: A ‘Contrats d’Assurance Vie’ or life investment policy.

The short version of what is means, is that it is an open-ended investment policy that can potentially hold multi-currencies and different types of investment according to need and the level of risk you want to want to take.

It has great tax advantages for the policyholder as well as inheritance benefits.

There is no limit to how much you can place in one of these vehicles, but they usually require a minimum of £20,000 – £30,000 and some offer the opportunity for monthly contributions.

They are often considered an 8-year policy as the tax benefits ramp up at that stage, but they are generally open ended. Some companies have a penalty clause for early closure

Want to know more? Contact Jennie direct for more information, there’s no obligation.

Website for Beacon Global Wealth

The information on this page is intended only as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI).All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licenced and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B

The post What to do with a pension lump sum when you move to France appeared first on The Good Life France.

Would you like to make more of your UK pension fund when you become an expat in France?

If so, you might find that a SIPP (a self-invested personal pension) is something that will help you generate the best retirement income possible. This option won’t be right for everyone. It’s important to have a qualified financial advisor review your position, but you may find that a SIPP gives you the potential to make the most of your pension fund whilst you enjoy the good life in France. We asked Jennie Poate at Beacon Global Wealth, expat finance advisors, to explain SIPPs.

Self- Invested Personal Pensions (SIPPs)

A SIPP sounds like it might be really complex, time consuming, stressful. But that’s not the case. All it means is that this is a tax efficient pension wrapper. Its aim is to give you flexibility.

That said, a SIPP can be simple or more sophisticated – which is where your financial advisor comes into the equation. Some people like to be hands on with their SIPP, but most don’t and want to leave investment decisions to the experts.

SIPP explained in plain English

A SIPP is a wrapper that goes around your pension investments. It allows you to benefit from tax breaks for example taking a tax-free lump sum of up to 25 per cent of your pension pot after the age of 55-years old.

Investors are also able to reclaim income tax on contributions (the annual UK allowance 2017 is £40,000). For higher rate taxpayers – the reclaim is very beneficial.

And, as well as paying personal contributions into your SIPP yourself, contributions may be paid by another person on your behalf e.g. a family member or if you are employed, your employer.

A SIPP enables investors to take control of financial decision making rather than leaving it in the hands of insurance companies and fund managers. But while SIPPs offer greater flexibility than traditional pension schemes, they often have higher charges and the time involved in research means they may be more suitable for experienced investors.

Can expats in France hold a SIPP?

If you’re a UK expat living in France, yes, you can consider a SIPP. As with other personal pensions, you do not have to live in the UK to be able to invest in a SIPP.

However, there are a few important considerations to consider if you do not live in the UK and are considering a SIPP.

As SIPPs are held in the UK, and are normally held in Sterling. This means that if you plan to draw an income from your SIPP while you live abroad you will be liable to currency fluctuations, so you may wish to factor this is into your retirement planning. For people who plan to retire abroad and not return to the UK, there may be other options (such as a QROPS) which offer similar benefits, but enable you to invest in different currencies.

Conversely, if you are paying into your SIPP while you live abroad and the value of the pound falls, the amount you are actually investing will increase.

SIPPs abide by UK pension rules and are affected by any changes the UK Government makes to pension rules. One example of this would be the recent changes to the Lifetime Pension Allowance where the Government reduced the allowance from £1.25m to £1m.

It’s important to understand the local French tax rules, as well as those in the UK before making a decision about how to draw an income from a SIPP.

Finally, and perhaps crucially, many expats will speak to a financial adviser when making a decision about their retirement plans. If you are seeking advice from an adviser in the UK, remember that they may not be fully aware of all the opportunities for expats. It is important you speak to an independent financial adviser who understands both the UK and French tax rules.

Whatever you do, it is important to do your homework as there are many different types of SIPPs each offering different investment options.

For expert advice contact Jennie Poate:  jennie (@) bgwealthmanagement.net or via the Beacon Global Wealth website

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI). All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B.

And the information on this page is intended as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

The post SIPPs for expats in France appeared first on The Good Life France.

The draft French budget for 2018 was presented to the French Parliament in September 2017. The budget is assessed by parliament before being approved at the end of the year, so further changes are possible.

The main measure affecting expatriates in France concerning Capital Gains Tax on Investment income is summarised below.

Tax on Investment Income – prélèvement forfaitaire unique

With the objective of simplification of rates and regimes, a single flat rate tax (prélèvement forfaitaire unique) of 30% will apply on all savings and investment income and gains – interest, dividends and shares – from January 2018. The tax comprises income tax at the rate of 12.8% and social charges of 17.2%.

Note: this new tax does not apply to capital gains on sale of property or rental income.

Social Tax increases will apply: from 15.5% to 17.2%.

Example: You are tax resident in France and hold Unit Trusts and ISA’s to the value of £100,000 in the UK, and they have grown at 4% (£4000) in the last French tax year. This whole gain (if withdrawn or not) has to be declared on your annual French tax return and will be taxed at 30% (£1200).

What is tax efficient for you in France and how does the new tax now affect these tax-efficient structures?

The Bank savings account Livret A remains tax free. The maximum investment currently is €22,950 per person (which can only be exceeded by interest received) and the current interest rate is 0.75%.

The Assurance Vie Structure

Most investments build up entirely tax-free inside the Assurance Vie wrapper, taxation is only deducted when you make withdrawals AND THEN ONLY on the growth element of your withdrawal.

Example: You are tax resident in France and hold an Assurance Vie valued at £100,000 and it has grown at 4% (£4000) in the last French tax year. If the growth is left in the policy, then it is not taxed. If you withdraw the £4000, then only the growth element of the withdrawal is taxable. In this example the growth is 4%, so only 4% (the growth element) of the withdrawal is taxable, i.e. only £160 (4% of £4000) is taxable, and the remainder is considered to be return of capital and comes to you in effect “tax-free”

The growth element of any withdrawal will be taxed at the following rates on all withdrawals after the 27/09/17:

During the first 8 years: 12.8% (+17.2% social charges) = 30% total

Note:  If you elect to have the tax deducted at source, at the time of withdrawal, the insurer will automatically deduct a tax “payment on account” (prélèvement forfaitaire obligatoire) on the gain element of your withdrawal and pay the French Fiscal authorities direct. You will then receive the withdrawal amount net of tax paid.

If you elect not to have tax deducted at source, when completing your annual tax return you can treat the “gain” as normal income (Impôt sur le Revenu – IR) which is then added on top of your existing salary/pension/etc and therefore taxed at your top band rate. If when you add all your income including the gains from your Assurance Vie and your household tax rate is then less than the 30% CGT rate, then this may be a better option for you.

After the first 8 years of the policy

You receive an annual tax-free “gains” allowance of €9200 per annum (for a couple with a joint policy) or  €4600 per annum (for a policy in a single name).

Above these tax free allowances, the growth element of any withdrawal is then taxed at the following rates:

If the outstanding capital is less than €150,000 (€300,000 for a joint policy) the tax payable on the growth element of a withdrawal is:

7.5% + 17.2% Social Tax (24.7% total)

If the outstanding capital is more than €150,000 (€300,000 for a joint policy) the tax payable on the growth element of a withdrawal is:

12.8% + 17.2% Social Tax (30.0% total)

Example of tax savings to be made in an Assurance Vie

You are tax resident in France and started an Assurance Vie with £100,000 five years ago, and it has grown by 20% (£20,000) since the start and is now valued at £120,000. You decide to withdraw this £20,000 growth and update your car. You elected to have the tax deducted at source on withdrawals, and we now know the tax due is only on the growth element of your withdrawal.

In this example the policy has grown by 20% therefore 20% only of your withdrawal is taxable i.e. tax is due on only 20% of £20,000 meaning only £4,000 is taxable (20% of £20,000).  The remainder is considered return of capital and in effect comes to you “tax-free”.

Tax payable on this £4000 is 30%; therefore tax payable is £1,200 only. The Insurance Company will therefore send £1,200 to the French Fiscal authorities and you will receive a net £18,800.

Paying £1,200 tax on £20,000 growth is an effective tax rate of just 6.0%

If this same example happened outside an Assurance Vie structure then the full £20,000 growth would have been taxed at 30%, meaning you then paid £6,000 tax, instead of £1,200 only, inside an Assurance Vie Structure.

By Paul Flintham, Beacon Global Wealth Management

For expert advice contact Jennie Poate:  jennie (@) bgwealthmanagement.net or via the Beacon Global Wealth website

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI). All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B.

And the information on this page is intended as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

The post Investment Income Capital Gains Tax Changes in France January 2018 appeared first on The Good Life France.

The draft French budget for 2018 was presented to the French Parliament in September 2017. The budget will work its way through parliamentary assessment before being approved at the end of the year, so changes to the proposal are possible.

Wealth Tax in France will be replaced by Real Estate Tax

We take a look at the main measure affecting expatriates in France are:

Wealth tax (l’impôt sur la fortune) will be replaced by a new Real Estate Tax (impôt sur la fortune immobilière)

The scope of the wealth tax will be scaled back to apply only to real estate. The same tax rates and bands will continue to apply (as per below). Property held by registered professional landlords (LMP) will be exempt.

The tax applies only to real estate held directly by an individual, along with shares in property-owning companies in proportion to the value of the property rights they own wherever the companies or the properties are located.  For example, a property owned in the UK by an expat in France will be included in the calculation.

Savings and investments, including assurance-vie policies will be exempt from this tax.

How Capital Investment vehicles may help expats

If you own or are thinking of buying investment property – it may be worth considering moving the funds into capital investments instead.

The current threshold of €1,300,000 will remain. The wealth tax scaled rates will apply to property, and main homes will still enjoy the 30% abatement. The 30% concession does not apply to second homes and the discount does not ordinarily apply in relation to a property held through a Société Civile Immobilière (SCI).

The rates payable are as follows:

Fraction Taxable                               Rate of Tax

€0 – €800,000                                   0%
€800,000 – €1,300,000                    0.50%
€1,300,000 – €2,570,000                 0.70%
€2,570,000 – €5,000,000                 1%
€5,000,000 – €10,000,000               1.25%
€10,000,000+                                    1.50%

Note: The government also appears to be conceding to parliamentary pressure for the scope of the tax to be widened to include luxury goods, such as yachts, private jets and race horses etc.

By Paul Flintham, Beacon Global Wealth Management

For expert advice contact Jennie Poate:  jennie (@) bgwealthmanagement.net or via the Beacon Global Wealth website

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI). All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B.

And the information on this page is intended as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

The post Proposed French Wealth Tax changes 1 January 2018 appeared first on The Good Life France.

Would you like to make more of your Pension Fund?

If, like many expats in France, your personal pension fund is one of your largest assets then you’re sure to want to give it the potential to generate the best retirement income possible.

We talk to Jennie Poate at Beacon Global Wealth about the QROPS – Qualifying Recognised Overseas Pension Scheme and how it may benefit expats in France.

QROPS – What is it?

QROPS is an overseas pension scheme that meets certain requirements set by His Majesty’s Revenue and Customs (HMRC). A QROPS must have a beneficial owner and trustees, and it can receive transfers of UK Pension Benefits.

The jargon explained:

In a nutshell what it means is that you can transfer your UK pension out of the UK and into an overseas pot which may be more tax efficient if you choose the right product. Since the UK Government introduced a new 25% tax on pension transfers to QROPS – you need to make sure you pick the right QROPS product.

In December 2016 the UK government removed all French pension schemes from its list of approved QROPS. For expats in France, though your choice of countries for QROPS has narrowed if you want to avoid paying 25% tax (and who wouldn’t want that?) if you transfer to a QROPS within another European Economic Area (EEA) of jurisdiction for instance Malta or Gibraltar, you will still gain tax-efficient benefits.  If you’re an expat in Monaco, a non-EEA country, by transferring to a QROPS within Monaco, you won’t be subject to the 25% tax.

What are the benefits of QROPS for expats in France?

Transferring your UK pension to a QROPS can provide significant tax advantages for instance on income and gains which no longer apply. Funds in your QROPS aren’t included in your Lifetime Pension Allowance (LTA) so growth in the fund is except from LTA tax penalties. QROPS can be used to manage estate planning as funds may be distributed according to your wishes, where as a UK Pension may only be inherited by a spouse.

How do you choose the right QROPS

Get expert advice. Before you decide to transfer your UK Pension into a QROPS, we’ll meet with you free of charge and provide you with excellent information so that you can make an informed decision. There are lots of factors we consider. We aim to save you tax and maximise your income and protect your assets. A QROPS transfer may not be right for you and if that’s the case, we’ll tell you that and we’ll see if there’s something else that’s more suitable – or not.

Jennie Poate is a qualified advisor with Beacon Global Wealth Management: beaconglobalwealth.com

This communication is for informational  purposes only based on our understanding of current legislation and practices which is subject to change and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice form a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained  in this communication is correct, we are not responsible for any errors or omissions.

Beacon Global Wealth Management are members of Nexus Global (IFA Network). Nexus Global EU is a division of Blacktower Financial Management (Cyprus) Limited (BFMCL) and Blacktower Insurance Agents & Advisors Ltd (BIAAL).  Beacon Global Wealth Management is an Appointed Representative of BFMCL which is licensed and regulated by the Cyprus Securities & Exchange Commission (CySEC) – Licence No. 386/20. Beacon Global Wealth Management is an Appointed Representative of BIAAL which is licensed and regulated by the Insurance Companies Control Service (ICCS) – Licence No. 5101

The post QROPS for expats in France appeared first on The Good Life France.

What do I do with my UK Pension when I move to France?

It’s a question we’re often asked at The Good Life France and we put it to financial expert Jennie Poate. She told us about a real life case study, one that she finds covers a common issue for expats moving to France. We’ll call her clients John and Jane Price. They moved to France in 2016 taking early retirement to live the good life and have the time to do things they enjoy – like cycling on the quiet roads of Dordogne…

Jennie says: I met with John and Jane at their lovely house in the Dordogne, they had bought it outright with cash raised from the sale of their UK property and had a sum of money set aside for renovation and living costs. At 53, Jane is unable to take her pension early (she has a pension pot worth £100,000 with a UK provider and she will need advice in 2 years’ time when she can access her pension early if she wishes to. John will be 55 this year and therefore can access his pension. He also has a pension pot worth £100,000 with a UK Advisor.

John told me that he wants to take his pension now so that the couple have money to live on while they’re renovating their house and settling into their new life. Though they understood that the UK pension rules changed in 2015, they had struggled to find an advisor in the UK to explain what their options are now they’re living in France.

As an expert in both UK and French financial matters, I asked them questions about their financial needs and requirements and then took them through the options available to them.

Annuity

This is where, in exchange for your pension fund, an insurance company will provide a monthly income until death (some products additionally offer a pension to a surviving spouse).  I explained that with this option, he could draw down 25% of the fun tax free, known as a Pension Commencement Lump Sum (PCLS) and a fixed amount of income for life.

Annuity rates have been particularly poor of late as they are based on interest rates. If John took this option in the UK, the PCLS would be tax free. However as he is a French resident, he would have to pay tax.

John asked me if could take the whole fund as cash.

Take your Pension in Cash

Well, yes, I told him. But, there are tax implications that need to be considered, both with the UK and French tax authorities.  In the UK the first 25% is tax free, then the rest is either taxed at 20% or 40% (depending upon your UK tax rate). In France it would be taxed at a set 7.5%. The pension may well be taxed in both countries and he would have to apply for a refund from the UK.  John will need to decide whether he would want all the cash with a tax charge, or the ability to draw on the funds as and when required. The latter is taxed at his marginal rate of tax in France, but as they would be taxed as a couple, the first €9790 each would be added together and no tax would be taken.

Drawdown funds

John could move his pension pot to a different structure altogether. For many UK pension pots, this is certainly an option. BUT only if it is in your best interest to do so, you need to check carefully that you won’t lose certain benefits with your existing policies when you move it. A ‘drawdown’ fund may be a great option and there are several types available including ‘QROPS’ (Qualifying Recognised Overseas Pension Scheme) and ‘SIPP’(Self-Invested Personal Pension). With some of these produces you can stop and start for income, and take cash depending on need.  This can suit your circumstances when you may need more or less income or a cash injection, and the fund is still yours – you haven’t relinquished control

One benefit of a QROPS is that you may have a higher tax free Pension Commencement Lump Sum (PCLS ) than under a UK scheme – 30% as opposed to 25%.

Pension Income in France

John and Jane were worried about how much tax they would have to pay on their pension income as well as inheritance tax which they heard was high in France.

Pension income in France is taxable but is not subject to the dreaded CSG or ‘social charges’. The amount remaining in the fund after death is not subject to inheritance tax.

Our meeting over, I studied John and Jane’s requirements carefully, and as with all clients, recommendations undergo several stages including rigorous compliance checks to ensure that their best interests were considered. It can take a while to do this but it’s really important that as an advisor I have all the facts, and as clients John and Jane know that they’re getting the best advice and recommendations for their circumstances and future.

John and Jill are living their dream life in Dordogne and we wish them much happiness.

If you’d like obligation free pensions advice, please contact Jennie Poate at: jennie@bgwealthmanagement.net

www.bgwealth.eu

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI). All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B.

The post What to do with your UK Pension when you move to France appeared first on The Good Life France.

There’s always such a lot to think about when you’re moving to France – from packing boxes and making sure your favourite glasses don’t get broken when you’re loading them onto the removal lorry to getting your post redirected. Some things are easy to forget but are really important for ensuring a successful move when it comes to the financial side of things.

Sort out your UK Tax position

For instance you should always inform the UK inspector of taxes at your local HMRC tax office that you are planning to move. You don’t have to do it in person, you simply fill in a form P85 (find and download it here: www.gov.uk). Doing this enables the UK tax office to clear up any outstanding issues before you move.  For example if you are receiving UK property rental income you will also need to complete a ‘non-resident landlord declaration’. This will enable you to receive the income gross otherwise, if rented through an agency, they will be obliged to give you the net rent after tax at 20%.

Consider Savings and Income

You should consider planning a strategy for your savings and income before you move. Some UK savings products just don’t work as well as you’d like them to when it comes to French taxation. For some savings products, it may be better to consider closing or changing them before you become French tax resident.  ISAs for example are a tax free product in the UK but are subject to a number of taxes in France. Therefore if you require the cash or need income, it may be better to look at the French options available which could be more tax efficient than keeping the funds where they are. This should be done before leaving the UK tax regime and entering the French as then no taxes will be payable. Premium bonds are taxable in France so that big win, may not be so large after all.

Assess your Pension options

What about pensions? Where are they? Can you access them yet? Review options with your adviser so that your pensions are in the best place ready for your move to France. Use a qualified authorised financial adviser who understands both the UK and French tax systems so that you can make an informed choice about your pension options. Arrange for a state pension forecast which will tell you how much you will receive and when. Pension income is often tax efficient in French terms compared with investment income which has a higher rate of ‘CSG’ or social charges. However some forms of investment bonds are incredibly tax inefficient especially if they are the offshore variety and really can be a ‘square peg’ in a round hole.

Think about Income

When you’re assessing your income, don’t forget you may pay tax on it in France – reducing what you have to spend.  A good adviser will be able to provide you with an estimate of tax payable and look at ways of minimising or reducing tax. Your estate agent can usually recommend someone English speaking who is local to you for tax purposes or your financial adviser can recommend someone to help based on your needs. Getting it right first time means that you won’t have to worry going forward.

Inheritance Planning

You may need to think about inheritance planning, doing this before you move can save considerable heartache (and headache) later. You may include all of your assets (property and cash) wherever they based. The notaire handling your house purchase may only look at how the property ownership should be structured, which of course might be only part of what you have.

A good adviser will be able to review everything you have in place now and in the future (after the sale of your UK property for example). They should take into account your income needs and priorities, coupled with your inheritance wishes and come up with a plan that will help you start off on the right foot for tax purposes once you become resident in France.

I’d advise you to use a competent tax adviser to prepare your first French tax return, especially if you don’t speak fluent French. Getting it right first time means no unpleasant surprises later on and allows you time to figure out how the system works. Your tax adviser can also liaise with your financial advisor concerning the timings for moving/closing some investments which can be crucial.

Jennie Poate is a qualified financial adviser. She is happy to answer any queries you may have by telephone or email and she and her team would be delighted to help you plan your move to France.

Jennie can be contacted at: jennie @ bgwealthmanagement.net; Beacon Global Wealth Managment

The information on this page is intended as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI). All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licensed and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B.

The post Top Tips for Brits moving to France appeared first on The Good Life France.

You’ve worked hard to pay for your dream retirement in France, now’s the time to enjoy that relaxed way of life you’ve planned.  If however, your ties to the UK are not entirely cut, and you have a pension being paid into a bank account in the UK –  then you should consider ways to make your pension go further in France.

Each expat’s circumstances will differ in terms of what they want to do or need to do with a monthly pension. Some may well be in the fortunate position that they have deposited a bulk amount of cash in their French account and don’t need to draw on their UK pension payments on anything more than an infrequent basis. Others (perhaps the majority in reality) will be reliant on those pension payments to live on.

For the specifics of how best to manage the pension itself, the advice of a reputable, qualified adviser should fully explain such things as QROPS (Qualifying Recognised Overseas Pension Schemes) and the process and implications of transferring a UK pension.

When it comes to moving funds from a UK account into a French account many people will still make the currency transfer using their bank. But, this may not be the best available option as banks can charge a fee each time a transfer is made and may not offer the best available exchange rate from pounds to euros.

An alternative option is to speak with an authorised currency broker to see how they can save you money – it costs nothing to ask.

Why speak with a currency broker?

Currency brokers transfer your funds in much the same way as a bank, but will most likely provide a better rate of exchange combined with a more personal service. They can also offer different options and solutions to meet differing currency requirements.

For example, banks will typically only offer the ‘spot’ rate which is the rate available should you wish to carry out a currency transfer at the time of asking. Currency brokers will talk you through options such as ‘forwards’ which may suit your needs better as well as provide an improved rate of return and add some protection from market fluctuations. The ‘spot’ option may well be the best solution for an individual’s needs and going through a broker should provide more euros for your pounds due to the improved exchange rate and removal of transfer fees.

Making savings and getting a more personal service make using a foreign currency broker an attractive option, and as it doesn’t cost you anything to check, you have nothing to lose.

Most currency brokers have the ability to set you up with a regular overseas transfer plan which means you don’t need to worry about organising it each month.

If you are in the position where you’re flexible about when you receive the euros some brokers hold a higher level of authorisation as e-money institutions and can hold client funds indefinitely, which provides a better opportunity to get a more favourable rate of exchange.

Whatever your personal pension situation is, make sure you get the most from your money so you can relax and enjoy life more.

The Good Life France uses Universal Partners FX. Registration is easy, secure and is a one time set up. After that you just log on and manage your currency transfers when you want to but there’s always someone on the end of the line to talk to you when you need it.

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Since the Pension rules changed in the UK in 2015, British Expats in France may find that the new rules have significant effects.

We looked at what it means in this article which covers who the rules apply to and some of the options.  Now we consider more details on pension information for British expats in France…

I still want to contribute to my pension
There are conditions and restrictions on non-UK residents contributing to UK pension schemes. If you are planning to work in France, it may be worth exploring the French personal pension options instead and this will be covered in the next article.

The government is planning to restrict tax relief on pension contributions for those earning over £150,000. The lifetime allowance will be cut from £1.25 million to £1 million from April 2016. Large penalties arise on the excess when in payment.

What about the 55% ‘death tax’?

The 55% tax charge has been abolished. If you die after age 75, and your beneficiaries take a regular income, it will be taxed at their marginal rate (depending upon where they are tax resident) or at 45% on lump sums, though this may change from 2016. This applies to annuities also but not final salary schemes.

I have a defined benefit pension?

If you have a defined benefit or final salary scheme and want to use the new rules, you have to transfer to a defined contribution scheme. Transfers over £30,000 require you to take advice from a pension transfer specialist regulated by the UK Financial Conduct Authority. This is not to be taken lightly and is very difficult to achieve. We are finding that the costs to move these types of pensions can be more than £5000 in fees as it is very complex, and an agreement to transfer the pension is difficult to achieve.

What about QROPS?

Many Qualifying Recognised Overseas Pension Scheme (QROPS) cannot yet provide full flexibility on withdrawals and only certain providers accept non-UK residents, so choices are limited. Also, the rule where 70% of the transfer value made to a QROPS must provide an income for life currently remains in place for non-EU QROPS.

What about tax?

UK taxpayers receive 25% tax free, with other income/withdrawals taxed at their marginal rate of income tax. For us in France there is an income tax levied on the lump sum at 7.5% (there is another method too but this would need to be discussed). If you were to take the whole amount as cash, then the remainder would be taxed at 20/40% in the UK and is potentially reclaimable from HMRC but it would take a number of months to see the light at the end of the tunnel.

By Jennie Poate: BeaconGlobalWealth.com for information and factsheets

The information on this page is intended only as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

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