Annuities

French Finance

Annuities

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Jackie 11/05/2008, 10:08
Simple question. Is a UK based annuity tax efficient in France compared with interest on say an Isle of Man savings account or a UK company pension. Impression from reading this site is not.................J

Re: Annuities

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Sunday Driver 11/05/2008, 11:31

See BobD's pension/annuity/interest calculation in the thread entitled 'Social Charges'......

 

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Waddya mean it's only Saturday......

Re: Annuities

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Jackie 11/05/2008, 12:07
Yes thanks I have done and hence my last comment but still like to have this confirmed or otherwise..........J

Re: Annuities

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Sunday Driver 11/05/2008, 15:51

Bob stated that his calculations were obtained by running the figures through the official impots on-line tax simulator, so you could regard that as official conformation.....

 

 

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Waddya mean it's only Saturday......

Re: Annuities

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Jackie 11/05/2008, 20:14
Ok tried the calculator with the annuities entered separately and then again lumped in with our pensions. In the first case the total of income tax and the social contribution was higher though not by a great amount. The calculator would not accept my teachers pension in TI in either case. So the answer to my original question would seem to be that annuities are not tax efficient!..Poo!.................J

Re: Annuities

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Sunday Driver 12/05/2008, 8:11

Going back to your original question and taking the three examples given.

Annuities qualify for a 30/50/60/70% relief before tax is calculated.  UK company pensions qualify for a 10%  relief.  Savings interest qualifies for no relief. 

Annuities attract 11% CSG/CRDS/PS on the after relief amount.  UK company pensions attract 0,5% CRDS on the total amount.  Savings accounts attract 11% CSG/CRDS/PS on the total amount.

 

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Waddya mean it's only Saturday......

Re: Annuities

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Jackie 12/05/2008, 8:51

Yes thanks for the figures. In playing with the tax calculator I note the following. Yes your income tax is lower if part of your income is an annuity but your social contribution is higher so you may pay more out overall. However if the ratio of pension to annuity is large then you may not pay out more overall. Confusing is it not.............J 

PS I take it that Building Society interest, premium bond prizes and profit on sale of say something like CMI Bond units are all treated the same.i.e they are totaled and go in box TS or should that be TR?

Re: Annuities

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Benjamin 12/05/2008, 13:46

Jackie wrote:

Simple question. Is a UK based annuity tax efficient in France compared with interest on say an Isle of Man savings account or a UK company pension. Impression from reading this site is not.................J

I'm a little intrigued as to why you are asking this question. The three financial products you quote are all completely different and are not interchangeable.

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Benjamin

St Malo 1-New evidence suggests mis-trial

Re: Annuities

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Jackie 12/05/2008, 14:00
Well in part because others thinking of coming to France to live might find it useful to know if it was a good idea to purchase an annuity or to put their money into some kind of savings paying interest. I would also know if annuities could be declared as pensions or if not would one be worse off for declaring them in another way. What would be really helpful in Tax Faqs is a list of common income sources like company pensions, state pensions, govt pensions, building society interest, premium bond prizes, sale of units from bond, annuities etc etc and where each is declared on the forms 2042, 2047 and 2042C. The French beside each box/section can be translated into English but, I suspect for most folk, has little meaning..........J

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