THE KNOWLEDGE See
BLEVINS FRANKS at the French
Property Exhibition Stand 33
income vulnerable to exchange rate fl uctuations. Ideally, you should hold some assets in euros to avoid this risk. However, you may also want
to spend money in the UK, return someday or leave an inheritance to UK residents. Ask your adviser about
investment structures that let you diversify currencies or consider transferring UK pensions to arrangements off ering currency fl exibility.
WHAT TO DO WITH UK PENSIONS British expats often fi nd it benefi cial to transfer UK pension funds into a Qualifying Recognised Overseas Pension Scheme (QROPS) to enjoy tax effi ciency, fl exibility and estate planning advantages over UK pensions. Alternatively, you could take
out your UK pension fund as a lump sum and potentially pay just 7.5% tax in France under certain circumstances. You could then re-invest the capital into tax-effi cient arrangements. There is no ‘one size fi ts all’
solution. With something as important as your pension, it is vital to take regulated professional advice tailored for you and your situation. Ultimately, you need
if you are better off selling UK property while still resident there or waiting until you are living in France. Note that there are various
ways of owning property in France, with diff erent tax and succession implications – this is particularly important with France’s forced heirship rules. If you have not bought your French home yet, do your research fi rst and take personalised, specialist advice to ensure your ownership method does not have unexpected consequences. The most suitable option
will depend on your family situation, what you want to happen to the property on death and how you will use it – will you live there full-time, treat it as a holiday home or rent it out?
FRENCH INHERITANCE REGIME French succession law and inheritance tax work very
diff erently from the UK and can be particularly complicated, especially if you have children from previous relationships or want to leave assets to distant or non-relatives. Succession tax rates can be as high as 60%, including for stepchildren and unmarried partners. The forced heirship rules can
automatically pass on up to 75% of your estate to your children, regardless of your intentions. You can nominate the law of your nationality to apply instead – though this may not cover French assets – but take care to understand all the pros and cons fi rst.
STRUCTURING YOUR WEALTH Do not assume that what is tax-effi cient at home will be the same in France. ISAs, for example, are fully taxable in France. France off ers its own tax-effi cient investment arrangements, such as the popular assurance-vie savings
policy. This also provides succession benefi ts and is defi nitely worth exploring. Your circumstances and
goals will change when you relocate too, so you need to take a fresh look at your fi nancial planning to establish if aff airs are set up in the most suitable way for your new life in France. Make sure your investment
portfolio is specifi cally designed around your circumstances today, future goals, income needs, objectives and risk profi le.
WHICH CURRENCY WORKS FOR YOU Many British expats tend to favour sterling for savings and investments, but this makes
professional advice to make the most of tax planning, pension and wealth management opportunities in France, and ensure you use compliant arrangements that suit your specifi c circumstances. An adviser with specifi c
cross-border experience with British expats who is up-to-date with the intricacies of French taxation and the frequent tax reforms can assist you in these matters so you can have peace of mind that your fi nancial aff airs are in order and you can relax and enjoy your new life in France. ■
Rob Kay is a Senior Partner at Blevins Franks Tel: 020 7389 8133
blevinsfranks.com
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FRENCH PROPERTY NEWS: January/February 202485
© SHUTTERSTOCK
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