Contact

News & Insights

Do you want HUGE tax efficiency for your savings in France?

Fortunately, there is a perfectly good solution for this in France – Assurance Vie.  Many of my clients have heard the name but do not necessarily know how it works.  Similar in make-up to a UK Equity ISA an Assurance Vie allows you to save your money in a tax-efficient ‘wrapper’. 

Assurance Vie, Working for You

What are the principles of an Assurance Vie and how can it help you with your tax planning?

  • Your investment is allowed to grow tax free.
  • Should you wish to withdraw funds only the part of the withdrawal that is subject to a ‘gain’ will be subject to tax and social charges, as the majority of your withdrawal is classed as return of capital.
  • For higher rate taxpayers you can choose to be taxed at the lower rates attributed through the Assurance Vie regime (12.8% in years 1 – 8, plus 17.2% social charges. After year 8 if your net premiums are below €150,000 then you can benefit from a reduced rate of tax at 7.5%) or your nominal rate, so if you are a nil-rate taxpayer then you will have no tax to pay.
  • After your 8th year there is a tax-free withdrawal allowance of €4,600 per annum (€9,200 for a joint policy), after which additional withdrawals are taxed as above.
  • You can nominate anyone to be a beneficiary of your Assurance Vie and unlike other aspects of inheritance the recipient is entitled to receive the equivalent of €152,500 tax free, with anything over this taxed at a rate of 20%. This means that anyone who is not a blood relative or spouse (step-children, cohabiting partners or friends) will not be subject to the usual 60% Inheritance tax. (Different amounts apply if initial investment is made when you are over the age of 70.)
  • Savings can be kept in sterling, or be made in Euros or US dollars and can be ported back to the UK should you return in the future.
  • You can have a choice of investment options to suit your specific requirements and level of risk, which can be altered as your needs change.
  • Assurance Vie policies are exempt from Wealth Tax.

However, this is only one aspect of your tax planning and it is extremely important to take full advice from the outset to ensure that your hard-earned cash, whether in savings, pensions or investments, keeps working hard for you.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from 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.

Other News

Pension Transfers – the need for advice

Island in the shape of the euro signThe UK government has admitted there are not enough pension transfer specialist advisers to deal with demand, particularly in the case of more complex transfers into overseas pensions. This was the government’s response in March to a consultation launched two years ago, on whether the need to take financial advice, introduced with pension freedoms, created difficulties for overseas residents – residents such as those living in Cyprus wishing to transfer their pension savings from the UK to a qualifying recognised overseas pension scheme (QROPS).

According to data from HM Revenue and Customs (HMRC), there were just short of 10,000 transfers to a QROPS in the 2016/2017 tax year. However, from these, only transfers of more than £30,000 would be subject to the advice requirement.

Read More

CRS Obligations and Expat Financial Advice

Address bookExpat financial advice providers and their clients need to be especially vigilant to ensure that they meet their legal obligations under the newly updated Common Reporting Standard (CRS), which will come into effect in September 2018.

It is likely that those who do not take steps to ensure full familiarity and compliance with the latest and extended OECD (Organisation for Economic Co-operation and Development) rules regarding the reporting of offshore income may face investigation and penalty.

Due to the complexity of cross-jurisdictional financial management, expats are perhaps the group at the highest risk of innocently falling foul of the rules, particularly if they are poorly advised or have a wealth manager or financial adviser who fails to securely or promptly deliver important communications.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.