WEALTH MANAGEMENT
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More wealth Generally, you should look at an
Assurance Vie as a medium to longer-term investment as investments can go down as well as up, and some providers have a minimum investment period or you may be subject to a penalty for early encashment. It is essential that you take proper fi nancial advice to fi nd the solution that suits you. As an added bonus an international
Assurance Vie taken out via Blacktower can be held in GBP, euros or USD and is portable, so should you move from France in the future, your investment doesn’t necessarily have to be cashed in but can
potentially be taken with you. All of this may still sound overwhelming,
so please contact Blacktower, we will assist you on your journey to France and beyond. Initial consultations are free. ■
This communication is for informational purposes only and does not constitute investment advice or research, you should seek advice from a professional adviser before embarking on any fi nancial planning activity. For Blacktower licencing information, please visit:
www.blacktowerfm.com/about-us/licencing
management advice… FrenchEntrée's relocation pages are packed with
information on every aspect of moving to France.
Find answers to questions such as: ‘What are the key dates in the France tax calendar 2024?’ ‘What tax-efficient investments are there in France’ and ‘How do I fill in my French tax return?’ on:
frenchentree.com/living-in- france/finances
Savings and investment in France
What are the principles of an Assurance Vie and how can it help you with your tax planning? • Your investment is allowed to grow tax free. • When taking withdrawals, only the part of the withdrawal that is classed as a ‘gain’ will be subject to tax and social charges, as the majority of your withdrawal is classed as return of capital.
• Higher rate taxpayers can choose to be taxed at the lower rates attributed through the Assurance Vie regime (12.8% in years 1-8, plus 17.2% social charges. Aſt er year 8, if your net premiums are below €150,000 then you can benefi t from a reduced rate of tax at 7.5%) or your nominal rate, so if you are a nil-rate taxpayer then you will have no tax to pay.
• Aſt er your 8th year, there is a tax-free withdrawal allowance of €4,600 per annum (€9,200 for a joint policy), aſt er which additional withdrawals are taxed as above.
• You can nominate anyone to be a benefi ciary of your Assurance Vie and unlike other aspects of inheritance, the recipient is entitled to receive the equivalent of €152,500 tax free, with the next €700,000 taxed at a rate of 20%. This means that anyone who is not a blood relative or spouse (stepchildren, non-married partners or friends) will not be subject to the usual 60% inheritance tax. (Diff erent amounts apply if initial investment is made when you are over the age of 70.)
• You can have a choice of investment options to suit your specifi c requirements and level of risk, which can be altered as your needs change.
• Assurance Vie policies are exempt from wealth tax. 16 l Expert Guide
© Shutterstock
© Shutterstock
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