46 leggettfrance.com
F
OR THOSE contemplating
the purchase of a
second home in France
or a complete move,
the timing has never
been better. If you're looking to
exchange Pounds for Euros to
buy that special home, the exchange
rate is higher than it has
been for years. Brits are seeing
increases in house values in
the UK and generally a fall in
France. And the housing market
in the UK is buoyant for sales,
giving you even more room to
negotiate the purchase of your
French home.
There are nevertheless
some issues you need to be
clear about, especially those
concerning income tax, inheritance
tax and wealth tax.
INCOME TAX:
Question:
We are retiring to France and
are worried our pensions will
be heavily taxed. What is the
position please?
Answer:
That does depend on the type
of pension. For example, most
local government pensions
remain taxable in the UK after
your nil-rate band is used up.
Other types, such as state
or private pensions, will be
taxable in France - where you'll
have a further nil-rate band.
Remember, if you're a married
couple you'll be taxed as a
household and not as individuals. You
won't be taxed twice
on your income. Don't worry:
the Double Taxation Treaty between
France and the UK makes
sure of this.
INHERITANCE TAX AND
REGULATIONS:
Question:
I can't leave my estate to whom
I like, can I? I've heard it has to
go to the children first.
Jennie Poate is Head of
Operations, France for
Beacon Global Wealth
Management
EXPERT ADVICE LEGGETT MAGAZINE
A good time to buy
Some people are concerned about the tax situation in France, worrying
that they will pay more tax in France than the UK. Here are the answers
to some of the questions we're being asked