How often should I review my financial situation?

By Amanda Johnson
This article is published on: 8th September 2017

08.09.17

How often should I review my financial situation?
This is a good question. Whilst there are no hard and fast rules as to when is a good time for a financial review, here are a few questions you can ask yourself to help you decide if the time is right now:

Have my circumstances changed since you last spoke to a financial adviser?
These could include a change in health, new jobs, reduction in income, bereavement or simply a change in personal goals since you last reviewed your finances.

Have any recent articles or programmes caused you concern?
The internet provides us with a wealth of information, through news programmes and social media which is sometimes difficult to decipher.

Do you know how any investments you have are performing?
Financial performance on different investments is based on many factors and knowing how your money is invested can ensure that it matches your outlook.

How much tax are you paying on your investment?
To encourage people to invest, the French government allow for certain tax efficient investments which can reduce your annual tax bill.

When did I last review my finances or speak to an independent financial adviser?
If not in the last year or so, now may be the time to check that you are making the most of many straightforward investment and tax planning opportunities that are often overlooked.

Whether you want to register for our newsletter, attend one of our road shows or speak to me directly, please call or email me on the contacts below and I will be glad to help you. We do not charge for our financial planning reviews, reports or recommendations.

Brexit: the effect on your money

By John Hayward
This article is published on: 2nd September 2017

What’s going to happen when the UK leaves the EU on 29th March 2019?

This is a question which is as easy to answer as predicting what the weather will be like on that day. The one thing which is certain is that the next day will be 30th March and it will be a Saturday.

How do we cope with the stream of commentary telling us pretty much nothing other than the EU’s frustration at the UK’s “cake and eat it” stance as well as its “magical thinking”? This rhetoric has made me think more of Alice in Wonderland. It is clear that people are getting a little tired of the lack of information that is being supplied. We know that there are serious financial considerations to be addressed. The problem is that we don’t know what they are right now.

What we can do is try, as best as possible, to cover whatever position we are placed in post-Brexit. For those of us living in Spain, positioning our money in a tax compliant and favourable way was imperative even before Brexit came along. Now it is even more important. There are certain investments such as ISAs, National Savings, and Premium Bonds, which are taxed favourably in the UK, for UK residents. They are treated differently for Spanish residents and it is likely that many holding these investments are not declaring these investments correctly. This may not be a huge problem right now as the UK is part of the EU and accountants and gestors are possibly treating non-compliant investments as if they are compliant. Things may be very different after Brexit and so it is vital to review what investments are held and where they are based.

What rate of tax is paid on savings in Spain?
There are currently three rates. 19% (First 6,000 euros), 21% (6,000 to 50,000 Euros), and 23% (Over 50,000 Euros). These rates apply not only to savings but also to gains on other assets such as investments, dividends, and property. For residents, these assets do not need to be in Spain to be subject to this tax. There are no capital gains allowances for the majority of people and so great care is required when selling assets and a review of assets and ownership is of major importance before the possibility that Brexit will also mean the loss of all EU tax breaks.

Fun financial fact
Consumer prices in the United Kingdom rose by 2.6 percent in the year to July 2017. In Spain it was 1.55%. We have to be aware that investments must perform at least at the rate of inflation to retain the same real spending power. In November 2008, Zimbabwe had an inflation rate of an estimated 6.5 sextillion%* (That’s 6,500 followed by 18 zeros). You would have needed one mean investment to match this rate.

*Source: Forbes

Do you know the rules around domicility?

By Derek Winsland
This article is published on: 1st September 2017

01.09.17

Like many in France, I took time off this month, and to while away the time, caught up on some industry articles. One such article was written by Old Mutual International that presented the results of a small survey it can conducted amongst ex-pats regarding what they believed were the rules around domicility.

It asked the respondents six questions, and the answers were sufficiently enlightening that I thought I’d share them with you.

1. British expats mistakenly believe they are no longer UK domiciled
Everyone has a domicile of origin, acquired at birth. For UK nationals, it’s possible to acquire a new domicile (a domicile of choice) by settling in a new country with the intention of living there permanently. However, it is not always guaranteed that one can lose one’s UK domiciled status and acquire a new one, as there are no fixed rules (as you would expect from HMRC) as to what is required.

Living in another country for a long time, although an important factor does not prove a new domicile has been acquired. Among the many conditions that HMRC list, it states that all links with the UK must be severed and they must have no intention of returning to the UK.

Research* shows 74% of UK expats who consider themselves no longer UK domiciled still hold assets in the UK, and 81% have not ruled out returning to the UK in the future. This means HMRC is likely to still consider them to be deemed UK domiciled.

2. British expats mistakenly believe they are only liable to UK inheritance tax (IHT) on their UK assets
As most British expats will still be deemed UK domiciled on death, it is important to understand that their worldwide assets will become subject to UK IHT. A common misconception is that just UK assets are caught. This lack of knowledge could have a profound impact on beneficiaries.

Before probate can be granted, the probate fee and any inheritance tax due on an estate must be paid. With UK IHT currently set at 40%, there could be a significant bill for beneficiaries to pay before they can access their inheritance. Setting up a life insurance policy could help ensure beneficiaries have access to cash to pay the required fees. Advisers setting up policies specifically for this purpose must ensure they place the policy in trust to enable funds to be paid out instantly without the need for probate.

Research* shows a staggering 82% of UK expats do not realise that both their UK and world-wide assets could be subject to UK IHT.

3. British expats mistakenly believe they are no longer subject to UK taxes when they leave the UK
All income and gains generated from UK assets or property continue to be subject to UK taxes. Some expats seem to think that just because they no longer live in the UK they don’t need to declare their income or capital gains from savings and investments or property held in the UK. By not declaring the correct taxes people can find they end up being investigated by HMRC, and the sanctions for non-disclosure are getting tougher.

Research* shows 11% of UK expats with UK property did not know that UK income tax may need to be paid if their property is rented out, and 27% were unaware that Capital Gains Tax may need to be paid if the property is sold.

4. British expats mistakenly believe that their spouse can sign documents on their behalf should anything happen to them
The misconception that a spouse or child or a professional will be able to manage their affairs should they become mentally incapacitated is leading people to think they don’t need a Power of Attorney (POA) in place. This could result in families being left in a vulnerable position as their loved ones will not automatically be able to step in and act on their behalf. Instead, there will be a delay whilst they apply to the Court of Protection to obtain the necessary authority. This extra complication is all avoidable by completing a lasting POA form and registering it with the Court of Protection.

Research* shows 44% of UK expats wrongly believe their spouse will be able to sign on their behalf should they become mentally incapacitated.

5. British expats unsure if their will is automatically recognised in the country they have moved to
It is wrong to assume a will or POA document is automatically recognised in the country in which they move to. Often overseas law is driven by where the person is habitually resident, and the laws of that country will apply. Therefore, people may require a UK will and POA for their UK assets and a separate one covering their assets in the country they live. The wills also need to acknowledge each other so as not to supersede each other.

Research* shows 50% of UK expats do not know if a will or POA is legally recognised in the country they have moved to.

If you feel you could be affected by this, or have personal or financial circumstances that you feel may benefit from a financial planning review, please contact me direct on the number below. You can also contact me by email at derek.winsland@spectrum-ifa.com or call our office in Limoux to make an appointment. Alternatively, I conduct a drop-in clinic most Fridays (holidays excepting), when you can pop in to speak to me. Our office telephone number is 04 68 31 14 10.

Le Tour de Finance, Domaine Gayda, 6th October 2017

This year’s event is now fully subscribed and we are unable to accept any more places. If you were wanting to attend, but hadn’t got round to booking, then all is not lost. It’s possible to make a personal appointment to see me in our Limoux office. Please ring either the office or me directly on my mobile.

Documents and information needed when someone dies

By John Hayward
This article is published on: 20th August 2017

20.08.17

Here you can check the lists of all the documents and information needed after someone dies. They will help you notify the required people and organisations immediately after the death and assist you in the longer term probate process.

Documents and information to get as soon as possible

You will need to gather together the certain documents and information as quickly as possible after a death, so you can start funeral arrangements and register the death. You’ll need to know:

full name and surname of the deceased
date and place of death and usual address
marital status (single, married, widowed or divorced)
date and place of birth
occupation of the deceased (if the deceased was a wife or widow, the full names and occupation of her husband or deceased husband will be required)
if the deceased was a child, the full names and occupation of the father will be required, or where the parents are not married the full names and occupation of the mother will be required
maiden surname if the deceased was a woman who was married
the name and address of the deceased’s GP

You’ll also need to gather together the following documents:

medical certificate of the cause of death (signed by a doctor) for registering the death
birth certificate
marriage/civil partnership certificates
NHS number/NHS medical card
organ donor card

Documents needed to notify benefits/tax credits offices

correspondence confirming payment to the deceased of benefits , tax credits (HM Revenue & Customs) and/or State Pension (Department for Work and Pensions)
Child Benefit number (if relevant)

Documents relating to a partner or relative

proof of your relationship to the deceased (for example, marriage/civil partnership or birth certificate, child’s birth certificate naming both parents)
your social security card/National Insurance number if you will be claiming/changing benefits

Documents/information needed by the person sorting out the deceased’s affairs

The personal representative is the person formally responsible for sorting out the deceased person’s estate, paying any taxes and debts and distributing the estate. They will need the following documents (where relevant):

sealed copies of the grant of representation (probate/letters of administration)

Documents relating to the death

the will, if there is one
death certificate (often needed when requesting access to funds; it’s best to order at least two extra certified copies when registering the death)

Savings/investments related

bank and building society account statements
investment statements/share certificates
personal or company pension account statements

Insurance

life insurance documents (including mortgage cover)
general insurance policies (for example, home, car, travel, medical)

State pension/benefits

relevant correspondence or statements from Jobs & Benefits Offices (for benefits) and/or the Pension Service

Amounts owing by the deceased

mortgage statement
credit card statements
utility/ rates bills in the deceased’s name
rental agreements/statements (private or local authority)
other outstanding bills
leases, hire purchase agreements or similar (for example for equipment, car or furniture)
educational loan statements
any other loan statements

Amounts owed to the deceased

outstanding invoices if the deceased ran a business
written/verbal evidence of other money owed to the deceased

Property

property deeds or leases (main home and any other at home or abroad)
property keys

Other possessions

existing valuations of property such as jewellery, paintings and similar (though an up-to-date market valuation will be required)
any existing inventories of proper

Employment or self-employment

PAYE form P60 and latest payslips if the deceased was employed
recent tax returns and tax calculation statements (if relevant)

Business related

company registration documents, accounts, tax and VAT returns if they had a business

Now is the time to review your finances

By Sue Regan
This article is published on: 18th August 2017

18.08.17

At this time of year not many of us can really be bothered with thinking about pensions, investments and inheritance planning – there’s far more exciting things going on, like holidays, friends and family visits (as long as they don’t stay too long!) and the summer fêtes and festivals in just about every village and town in the region.

This is usually a quiet time for us financial advisers, but this year – not so much – perhaps it’s the “Brexit effect” that is causing more ex-pats to think about their financial future now rather than put it off until after the end of the silly season. Of course, there are still no clear facts as to how Brexit will impact on UK citizens living in France, so planning for it is not easy, but reviewing your situation now will give you a clearer idea of your financial future, whether your plan is to stay in France or return to the UK.

Of course, there is never a wrong time to review your financial health. Regardless of whether or not Brexit actually happens, or whether it is a soft or hard Brexit, things generally change over time, such as pensions and tax legislation, investment performance, physical well-being, income and capital needs………. the list goes on.

These are some of the things that a good financial adviser will discuss with you at a regular review meeting, to make sure that your finances are on track to meet your current needs and longer term goals. It is vital that your pensions and investments are structured in the best possible way to produce a suitable level of return and, at the same time, mitigate taxes as much as possible.

Also, as a French resident, your adopted or default marriage regime can make a huge difference to how your assets are treated for inheritance tax purposes and, by simply changing your regime with the help of a Notaire, the survivor of a couple can be much better protected from the French laws of forced inheritance, as well as other important benefits. Your financial adviser should be able to discuss these matters with you.

As I mentioned in my previous article, the very popular Tour de Finance is once again coming to the stunning Domaine Gayda in Brugairolles 11300, So, if you are concerned about your investments and pensions in a post-Brexit world why not join us at this very popular event where you can meet the team in person and listen to a number of industry experts in the world of financial advice. This year’s event will take place on Friday 6th October 2017. Places are by reservation only and it is always well attended so book your place early by giving me a call or dropping me an email. Our speakers will be presenting updates and outlooks on a broad range of subjects, including:

Brexit
Financial Markets
Assurance Vie
Pensions/QROPS
French Tax Issues
Currency Exchange

Financial advice is needed more than ever in uncertain times and doing nothing can often be an expensive mistake. Hence, if you would like to attend the event or would like to have a confidential discussion about your financial situation, you can contact me by e-mail at sue.regan@spectrum-ifa.com or by telephone on 04 67 24 90 95.

The Spectrum IFA Group advisers do not charge any fees directly to clients for their time or for advice given, as can be seen from our Client Charter

EU Pension Transfer from the EU Institutions – It is EUr money

By Spectrum IFA
This article is published on: 15th August 2017

15.08.17

Have you ever worked for any of the below institutions for less than 10 years? Go ahead, and have a look:

• European Commission
• European Council
• European Parliament
• EEAS
• European Court of Justice
• Eurocontrol

If yes, then carrying on reading this article, as an EU Pension Transfer will definitely be of interest to you. If not, then you’ll probably want to stop reading, unless you know someone in the aforementioned position.

To Whom It May Concern, if you have worked for less than 10 years at the EU Institutions (and have left), you will not have qualified for the gold plated, much coveted, EU Pension. I say much coveted, as no one is really making pensions like them anymore; as they are very, very expensive for the employer to maintain. Yet, they can be very, very good for you, the employee. Anyway, I digress. That is for another article.

As you will know by now, you have to work at the EU Institutions for at least 10 years (this can be interrupted, as long as the total is 10 years) before you qualify for the pension. If you leave before that time, then you are eligible for a severance grant which you can transfer into a scheme that has been approved by the EU. As it states in the EU Staff Regulations handbook:

“An official aged less than the pensionable age whose service terminates otherwise than by reason of death or invalidity and who is not entitled to an immediate or deferred retirement pension shall be entitled on leaving the service:

a. where he has completed less than one year’s service and has not made use of the arrangement laid down in Article 11(2), to payment of a severance grant equal to three times the amounts withheld from his basic salary in respect of his pension contributions, after deduction of any amounts paid under Articles 42 and 112 of the Conditions of Employment of Other Servants;

b. in other cases, to the benefits provided under Article 11(1) or to the payment of the actuarial equivalent of such benefits to a private insurance company or pension fund of his choice, on condition that such company or fund guarantees that:

I. the capital will not be repaid;
II. a monthly income will be paid from age 60 at the earliest and age 66 at the latest;
III. provisions are included for reversion or survivors’ pensions;
IV. transfer to another insurance company or other fund will be authorised only if such fund fulfils the conditions laid down in points I, II and III.”

The last 4 points are the most important to note as your money will not be transferred unless the approved receiving organisation adheres to those criteria.

WHY WOULD I TRANSFER?
Essentially, you have to, unless you like losing large sums of money. If you have not transferred by the time you have reached pensionable age, then your money disappears and is absorbed by the EU. If you die before you claim your money, then it is also lost. It will not be transferred to any beneficiaries as it is not a pension. When you leave, the amount that you leave behind is frozen and only increases at a very low interest rate; no further contributions are made on your behalf. So moving it when you leave allows you the opportunity to invest it into funds that could grow your money substantially over the years (depending on how close you are to retirement). For example, if you left the institutions at 40 years old, you would have at least 25 more years to grow your money. If you leave earlier, then you would have longer.

Moving it would also allow you better protect your financial future, make provisions for your partner or dependents/beneficiaries. It can be of benefit even if you decide to return to the EU Institutions.

There may be circumstances where it is not appropriate for you to transfer the money at that time, your particular situation will be evaluated by our pension specialist who will compile a report detailing the appropriateness of the potential transfer.

SOUNDS GREAT! WHAT NEXT?
We will conduct an evaluation of your situation and also the accumulation of your money at the EU. Once we have confirmed and agreed with you that transferring out is the right option for you, we will work with an approved provider to who complies with the requirements as stated above who will help set up your new pension. Then, as part of our ongoing service, we will review your pension and personal circumstances every quarter to ensure that you are always updated with the latest information. Even if you move countries, our service will continue.

We have established contacts with case handlers in the Office for the Administration and Payment of Individual Entitlements (the department responsible for calculating and transferring your money), and have developed the knowledge and expertise to ensure a smooth transfer, putting you in control of your money and helping you make the right decisions, as and when they are needed.

So, if you have no longer work for the EU Institutions and have less than 10 years’ service, you don’t like losing large sums of money, wish to protect your financial future, and potentially provide for your dependents/beneficiaries, then contact me either by email: emeka.ajogbe@spectrum-ifa.com or phone: +32 494 90 71 72 to see whether an EU Pension Transfer is suitable for you.

Common Reporting Standards

By Derek Winsland
This article is published on: 27th July 2017

27.07.17

Over the last few weeks, I’ve witnessed the application of the Common Reporting Standards initiative in action. Firstly, from my bank HSBC requesting information to be transmitted to the tax authorities both here in France as well as in UK. This week, I received an email from a client who has also received a letter again from HSBC enquiring about his residency.

It’s clear that the sharing of financial information between tax authorities of different countries is now in full swing. Annual reporting by every financial institution into its own tax authority was introduced in January 2016 and I’m seeing more and more examples of this in operation. For the tax authorities, residency is the main focus – where has the individual declared residency, and where are that person’s assets held.

We’re at the stage now where that information is being studied by local tax offices and enquiry letters being sent. But what information is being shared? Overseas bank accounts are the most common example, hence HSBC and others enquiring about an account holder’s residency status. Other examples include investment bonds held overseas, ISA accounts, unit trust and investment trust portfolios, share accounts, premium bonds…. the list goes on.

With investments held outside of an insurance-based investment bond, any change of fund either through switching or closure could be liable to capital gains in the hands of the investor, so your local tax office is sure to be interested in learning about this. Income drawn from certain, non-EU jurisdiction investment bonds are viewed very differently here in France. And remember, ISAs carry no tax advantages here, so any switches, partial encashments, or sales of funds made by a UK financial adviser or investment manager could have repercussions for the investor resident in France.

If you’re tax resident in France, you are obliged to list all overseas investments and accounts on your annual tax declaration; non-disclosure can result in fines ranging from €1,500 per account up to €10,000 depending on where the account is held. These fines are also per year of non-disclosure.

Quite often we see situations where doing nothing has proved to be an expensive mistake so if ever there was a time to get your financial affairs in order, it is now before the Fisc comes calling. If you’re resident in France, your local tax office can look back through previous years as well, so long forgotten ISAs cashed in can potentially appear on its radar.

If you would like information on how best to re-organise your investments to make them tax-compliant, we are staging the latest in our series of popular Tour de Finance events in the Limoux area on Friday 6th October. Open to everyone, the event, held at Domaine Gayda in Brugairolles is now in its ninth year. Always a popular event, you are urged to order tickets well in advance. There will be a series of short presentations during the morning, culminating with lunch and an opportunity to sample the local wines. If you would like to attend, please email me for your tickets, numbers are limited, so I urge you not to delay.

Subjects covered during the morning include:
Brexit
Financial Markets
Assurance Vie
Pensions/QROPS
French Tax Issues
Currency Exchange

If you have personal or financial circumstances that you feel may benefit from a financial planning review, please contact me direct on the number below. You can also contact me by email at derek.winsland@spectrum-ifa.com or call our office in Limoux to make an appointment. Alternatively, I conduct a drop-in clinic most Fridays (holidays excepting), when you can pop in to speak to me. Our office telephone number is 04 68 31 14 10.

Is lending money to a government still low risk?

By Peter Brooke
This article is published on: 26th July 2017

26.07.17

If you buy a government bond, sometimes called GILTS (UK), BUNDS (Germany) or T-Bills (US), as an investment, then you are effectively lending that government money. Most portfolio managers say investors should have some bond exposure in their investment portfolios as they diversify away from other assets like shares.

How do Bonds work?
You start by buying a bond on ‘issue’ for a set issue price with a ‘promise’ to pay you back the same amount in a date in the future. In the meantime, the bond pays you a ‘coupon’ or interest in payment for you lending your money. The bonds are also traded on a ‘secondary bond market’ where the price fluctuates according to supply and demand but the coupon remains the same… this means that your interest rate changes depending on what price you pay for the bond.

You can also invest in ‘funds’ of government bonds which are managed by professional managers using new issue and secondary market bonds around the world to build a diversified portfolio… but are they as low risk as they are made out to be?

Traditionally these forms of investment have always been viewed as low risk, as governments, unlike companies or individuals can always ‘print money’ and so can always pay you back. This also means that the interest rate you receive (the coupon) will be lower than company bonds.

If we consider that RISK is the chance of loss then I would argue that these investments are no longer low risk. Right now, we are in an environment where interest rates are at all-time lows around the world, inflation is starting to bite and so the chance of an interest rate increase by central banks is high; even though the rate increases may be low.

If you are holding any bond and interest rates go up, then bond values will drop, therefore I would argue that at some point you are risking a capital loss by holding government bonds. Some analysts believe that a 1% increase in interest rates could lead to a 10% capital loss on most bonds. If this is the case are you now being compensated for this risk of loss? Well, no… interest rates on government bonds are around 1% now and so with inflation higher than 1% in most countries you are losing money on an annual basis too.

So, what can you do about it? The first option is to take a little more risk and swap your government bonds for high quality corporate bonds… the coupon will be greater and as long as the companies are in good health then they should be able to repay you at the end of the term… there are also funds of corporate bonds which diversify risk.

The corporate bond market is segmented by credit rating so be aware of the level of risk this can bring to your savings… “high yield” (Europe) or “junk bonds” (US) tend to behave more like shares.

Another option would be to diversify away from western government bonds into emerging market government bond funds… there is some extra currency risk, though this can help performance too. Finally, you can outsource the choice of the bonds you buy by using a Strategic Bond fund… this will invest in corporate, government and emerging markets bonds on a strategic basis and would be very diversified.

This article is for information only and should not be considered as advice.

The Spectrum IFA Group supporting Village by Village

By Spectrum IFA
This article is published on: 21st July 2017

21.07.17

As one of it’s chosen charities, The Spectrum IFA Group is supporting ‘Village by Village‘ in 2017. We were delighted to receive the following letter and photos from it’s CEO Neil Kerfoot. Their mission is to reduce the needless suffering and deaths of children living in poverty in remote rural African villages.

Morning Spectrum,

Hope you are happy & healthy.

Thanks again for the donation to the solar homework lights project, we asked one of out staff to pop around to a pupil’s houses at night just to see how the children were getting on with their solar lights. We sometimes find we offer solutions to issues in the community the community then finds interesting added value additional uses for the items we provide.

We asked one of the pupils on the solar homework project to write in his own words how he found the solar lights.(See Below with photo’s, his Mum looks like she is not to be messed with!) In this case the little boy mentions he uses the light at night to go to the loo. This is really important not to see where you are going but to let the snakes know you are coming so no one gets any surprises (including the snakes, giving then time to slither off). Snake bites at night are a problem in Ghana especially in children who because of their smaller bodies can not disperse the poison as well as fully grown adults.

“It helps me to learn. I also use it when I have to visit the toilet in the night. Thank you village by village for this light that helps me to study at night. It helps in some of the domestic things we do too. Richard aged 13 Pupil from Abenta Village School, Nr Adowso, Eastern Region, Ghana. (The photos are all a bit staged but what was nice and you can not tell from the images is the visit was a surprise but before we were allowed to take any photos both Mother and son wanted to put on their best clothes for the photos/you to show they were worthy of your support)

Me da se (“Thank you” in Ghanaian)
Neil Kerfoot MSc
Chief Executive of Village by Village
www.villagebyvillage.org.uk

Ignorance is not always bliss…………..

By Sue Regan
This article is published on: 17th July 2017

………..and, in the context of not structuring your investments to the tax regime of the country in which you reside, it can prove to be very costly.

Let’s take the scenario of the savings conscious UK investor who, over the years, has used some of their available cash to build up a nice portfolio of tax-free investments in ISA wrappers, but then decides to take up residency in France. From the date of moving to France the tax-free status of UK ISA is not recognised in France and any income or capital gains arising from the ISA portfolio become liable to French tax.

Not everyone is aware of the tax efficient structures available in France for longer term savings, the most popular of which is far and away the Assurance Vie, and, as a consequence, suffers the pain of incurring tax liabilities where there were none previously, not to mention the extra administrative burden (and accountancy costs) associated with completing the end of year tax return. In addition, they are missing out on the compounding effect that any unnecessary taxes would have on the growth of the portfolio, which, in itself, is a crucial factor which should not be underestimated.

It’s not only the tax-efficiency of ISAs that is affected but, if you have a UK financial adviser advising you on the management of your investments, then it is unlikely that they will be able to continue to give you appropriate advice due to your change in residency and tax regime. You probably wouldn’t have sought the advice of a French regulated IFA to manage your UK investments when you lived in the UK so it doesn’t make sense to expect a UK regulated IFA to advise you when living in a different tax jurisdiction to the one in which they are qualified and regulated.

Of course, making the switch from UK tax efficient savings to French tax efficient savings may not be without some cost at the beginning – but the longer term benefits are highly likely to far outweigh any initial cost. If you have not yet become French resident, by taking the initiative and disposing of your ISA portfolio beforehand, there would be no tax implications whatsoever.

An added attraction to the Assurance Vie is that there is no limit to how much can be invested and the longer you hold them the more tax-efficient they become. In addition, this type of investment is highly efficient for mitigating the potential French inheritance taxes so that your heirs can receive more of your wealth, instead of the French State.

The very popular Tour de Finance is once again coming to the stunning Domaine Gayda in Brugairolles 11300, So, if you are concerned about your investments and pensions in a post-Brexit world why not join us at this very popular event where you can meet the team in person and listen to a number of industry experts in the world of financial advice. This year’s event will take place on Friday 6^th October 2017. Places are by reservation only and it is always well attended so book your place early by giving me a call or dropping me an email. Our speakers will be presenting updates and outlooks on a broad range of subjects, including:

Brexit
Financial Markets
Assurance Vie
Pensions/QROPS
French Tax Issues
Currency Exchange

With a newly elected French government now in office and the forthcoming publication of the French Projet de Loi in the Autumn, the seminar will be an ideal opportunity to find out how any potential French tax changes may affect you, particularly as President Macron has promised changes to the wealth tax regime.