My UK will and living in France
By Amanda Johnson
This article is published on: 15th August 2013
Question: Is it true that even though I live in France, new legislation is coming which means I can use my UK will when I die and will pay less inheritance tax as a result?
From August 17th 2015 European law will allow British Nationals the option of electing to use their UK wills in France. The inheritance tax regimes for France & the UK are quite different and professional advice should be sought before deciding which option is going to be correct for you.
Under the UK system each person has £325,000 of tax allowances before paying death duties on their estate, whilst in France it is 100,000 Euros per child per parent. Clearly the more children you and your spouse have the greater the allowance before paying death duties in France. You also have the tax advantages in France of using an Assurance Vie, where you can leave additional money per beneficiary outside of your inheritance tax bill.
As you can see where you pay inheritance tax is not a straightforward decision and opting to use a UK will is not necessarily a good idea for everybody. Although the new regulation is still two years away, understanding how you can maximise your inheritance tax allowances now, coupled will an understanding of which regime will suit your personal circumstances better after August 2015 is a sensible idea and getting the right advice is very important.
I offer a free consultation in the privacy of your own home to discuss your circumstances and explain how to maximise your tax free allowances here in France.
It is very important to manage your money so that it works hard for you, after all you’ve worked hard to earn it and have already paid tax on it, so why would you choose for your loved ones to pay more than they need to when you are gone?
A smart strategy borrowed from the Chinese – BBC.com
By Peter Brooke
This article is published on: 29th July 2013
Smart investment strategies borrowed from the Chinese. An article from BBC.com with comments from The Spectrum IFA Group
Peter Brook comments on an article from BBC.com
To read the full article please click here
Make it work on a single salary BBC.com artcile
By Stuart Faires
This article is published on: 8th July 2013
Having one parent stay home is increasingly becoming a luxury
Having one parent stay home is increasingly becoming a luxury. Kate Ashford from BBC.com asks The Spectrum IFA Group how to plan for this lifestyle change.
To read the full article please click here
French U-turn on tax grab spells good news for expats
By Graham Keysell
This article is published on: 2nd July 2013
Expats in France can breathe a sigh of relief after the French government backed down on its tax grab on second homes.
From September 1, those owning a second home in the country for more than 22 years will have complete exemption from capital gains tax (CGT).
Graham Keysell comments in The Daily Telegraph personal finance section. Read more here
Ask Amanda in The Deux Sevres Magazine & The Vendee Magazine
By Amanda Johnson
This article is published on: 30th June 2013
Since I started writing in The Deux Sevres Magazine & The Vendee Magazine, I have met and spoken to many interesting people who have either already made their permanent move to France or are in the final steps of doing so. They have many questions and here are some of those I have answered over the past year:
I have just sold my house in the UK and have some capital, why should I see a Financial Planner?So that all the financial options available to you in France can be explained, allowing you to make an informed decision based on your personal circumstances and aspirations.
I currently spend more time in the UK, why should I see a UK Financial Planner?UK financial rules and regulations differ to France. Talking to an “in-country” specialist & working with a French regulated company will enable you to keep up to date with the current rules relating to your finances and future changes as they arise.
If I need cash at a later date after buying a house here, can I easily release some equity in my French Property? This is a more complicated process than in the UK. The banks look very closely at what your plans for the money are and your personal circumstances. This is especially tricky if you find that your income has reduced since moving to France.
I have made a UK will, is that sufficient in France? If your main residence is in UK, then a UK will be fine. However, if your main residence is in France then it is necessary to make a French will.
If I move to France before retirement age, what happens to my UK Pensions until I am old enough to drawn them? There are many options available to you depending on your personal circumstances and this is an area that the needs looking at very carefully. Being an expatriate does allow you certain flexibility with historic employer pensions.
I have UK investments; can I get tax efficient investments in France? Yes, the French government give allowances to French residents and I can explain these to you, as well as whether the tax status on UK investments has changed with your move.
How much will it cost me to see a Financial Adviser? The Spectrum-IFA Group charges no fee for consultations. We get paid by the companies we deal with. Please ask for a copy of our client charter which explains how we work.
If you have any questions that you feel I may be able to help you with, please “Ask Amanda” and I will call you to discuss your questions and arrange the most appropriate answer.
UK Pensions and Living in France
By Amanda Johnson
This article is published on: 30th May 2013
When I see the Charente melons being planted in the fields near my house, I realise that the winter has finally left us and another year has flown by. To many people who now live in France, each year that passes brings us one step closer to retirement and being able further enjoy our French adventure. Working and living in France brings different factors to bear than being in the UK and without careful consideration and planning these can result in your pension being lower than anticipated.
People often ask me: “How much will my UK pension likely be & how can I maximise my pension when I come to retire in France?”
Helping people understand what their pension position is and how they get best manage retirement plans in France is a key part of my role. Here are some of the areas we discuss:
- UK state pensions
- Work & other private pensions
- French retirement options (including returning to the UK)
- Inheritance
- Peoples increasing life expectancy
- Property and other assets as a pension pot
- Paying tax on your pensions (how & where)
Having left the UK, you may not have paid sufficient National Insurance (“NI”) contributions or if self-employed, paid a different NI class to qualify for a full state pension.
You may have pension pots from working at different companies and having moved to France want an opportunity to understand how these will mature and whether they can be better put to work for your retirement plans. Inheritance issues and any property you are thinking of using to supplement pension income is also worth noting.
Finally, how and where you pay tax on your pensions can be discussed to ensure that the tax you pay is as low as possible.
If you are living and working in France and have not considered your retirement plans, perhaps you would like me to visit you and have a free financial health check or simply email me with any questions and I would be happy to help.
‘Ask Amanda’ – The Deux Sevres Magazine & the Vendee edition
By Amanda Johnson
This article is published on: 15th May 2013
Welcome to “Ask Amanda”.
I have been writing regularly for the Deux Sevres Magazine and am delighted to be invited to now contribute to the Vendee edition. I want to start by introducing myself.
I am Amanda Johnson and have lived in the Loudun area, with my family, for the past 7 years. I am a Financial Planner working with the regulated Independent Finance company “The Spectrum IFA Group”. We specialise in helping expatriates understand the benefits and obligations of living in the French system. Bilingual, with 20 years of financial experience in the UK, I am authorised through Orias in France and The Spectrum Group is also registered with the AMF.
Living in France is very rewarding but many of the rules and regulations, especially when it comes to taxation, inheritance, retirement planning, buying and renovating your home, differ from the UK. Working closely with colleagues throughout France ensures I can share experiences, best practices and keep you abreast of changes in French financial law. This is why I consider it important to have a servicing strategy of regular face to face meetings with my clients.
I am frequently asked about Inheritance tax planning and can usually make recommendations that ensure when you have lost a loved one any financial loss is kept to a minimum? I can help you optimise your savings by offering a range of investments in major currencies, protecting you from exchange fluctuations and from inheritance tax should the worst happen. I can also review existing pension arrangements giving advice on your future retirement plans.
Over the coming months I will be detailing questions I am asked and providing answers which have helped my customers & I hope will assist you. For a Free Consultation, on Inheritance tax, investments, retirement planning and tax efficient buying or renovating your home, or to review your current circumstances, please contact me.