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11/05/2008, 10:08 Jackie Joined on 17/01/2006 Deux Sevres France Posts 167 Annuities 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    Report

11/05/2008, 11:31 Sunday Driver Joined on 07/10/2005 Deux Sevres (79) Posts 2,754 Re: Annuities See BobD's pension/annuity/interest calculation in the thread entitled 'Social Charges'......   Waddya mean it's only Saturday......    Report

11/05/2008, 12:07 Jackie Joined on 17/01/2006 Deux Sevres France Posts 167 Re: Annuities Yes thanks I have done and hence my last comment but still like to have this confirmed or otherwise..........J    Report

11/05/2008, 15:51 Sunday Driver Joined on 07/10/2005 Deux Sevres (79) Posts 2,754 Re: Annuities 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.....     Waddya mean it's only Saturday......    Report

11/05/2008, 20:14 Jackie Joined on 17/01/2006 Deux Sevres France Posts 167 Re: Annuities 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    Report

12/05/2008, 8:11 Sunday Driver Joined on 07/10/2005 Deux Sevres (79) Posts 2,754 Re: Annuities 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.   Waddya mean it's only Saturday......    Report

12/05/2008, 8:51 Jackie Joined on 17/01/2006 Deux Sevres France Posts 167 Re: Annuities 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?    Report

12/05/2008, 13:46 Benjamin Joined on 21/08/2005 Vendée South Posts 1,565 Re: Annuities  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. Benjamin Snips, snails and puppy dog tails    Report

12/05/2008, 14:00 Jackie Joined on 17/01/2006 Deux Sevres France Posts 167 Re: Annuities 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    Report

12/05/2008, 14:29 ams Joined on 07/08/2007 Posts 273 Re: Annuities Have you looked at assurance de vie, competely income tax, CGT, social assurance and cmu free whilst within the framework of the contract. At the end of 8 years the tax rate is substantially reduced, (7.5%) the 11% still remains and no CMU de base. However for a married couple the first €9,200 is free from all taxes.   ams    Report

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