Changes Affecting Expatriates In France
One of the topics covered at the Blevins Franks “Removing the Myths”
By Mary Taylor, Partner, Blevins Franks
You may be living in France, but British expatriates still need to understand how the UK tax regime may continue to affect them and follow any proposed tax reforms. At the same time you need to keep up to date with changes in France.
At the time of writing we do not know what the 2014 French Finance Bill will bring, but we do know of changes on the way that impact UK nationals.
Taxing non-residents on property gains – Under current rules, provided you are non-UK resident for five years, you do not pay UK capital gains tax when selling UK assets. But from next April non-residents disposing of UK residential property will start being charged UK tax on the gains.
Restricting the personal allowance for non-residents – The UK government is considering withdrawing the personal allowance from non-residents, except those with a strong economic connection to the UK. This may affect you if you receive a government service pension, or rental income from the UK, or earn other income from UK investments or employment.
More pension freedom – From April 2015 individuals aged over 55 will be able to withdraw as much of their UK pension funds as they wish. UK taxpayers will pay tax at their marginal income tax rate (above the tax free lump sum). Here in France, the taxation of lump sums provides an attractive opportunity for you, and you could pay much less tax than in the UK. Changes already in place also provide the potential for more income.
Succession law – France imposes strict restrictions on who you can leave your assets to. Children are protected heirs; spouses are not protected. From August 2015 new EU wide regulations – “Brussels IV” – will allow you to elect for the laws of your country of nationality to apply instead. Note that French succession tax will continue to apply, so you should consider the tax position and seek advice on how to lower the liability for your heirs.
To help British expatriates in France make sense of all these changes, Blevins Franks are holding seminars entitled “Removing the myths”, where we separate fact from fiction and discuss how the changes affect you.
Host & Vinum – Les Clos des Pins
Tuesday 23 September
GIMONT (Near Auch)
Château de Larroque
Thursday 25 September
Mary Taylor: TEL 05 62 30 51 40
To keep in touch with the latest developments in the offshore world, check out the latest news on our website www.blevinsfranks.com
Summarised tax information is based upon our understanding of current laws and practices which may change. Individuals should take personalised advice.
Blevins Franks Financial Management Limited is authorised and regulated by the Financial Conduct Authority in the UK, reference number 179731. Where advice is provided overseas, via the Insurance Mediation Directive from Malta, the regulatory system differs in some respects from that of the UK. Blevins Franks Tax Limited provides taxation advice; its advisers are fully qualified tax specialists.