Charges due on French AV withdrawals

We have assurance vie contracts we have held for nine years. If we start to withdraw €9,200 per year as a couple, how much will be due in social charges and tax? I.S.

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After holding an assurance vie contract for eight complete years, there is a tax-free element that you can take which, as you correctly identify, is €4,600 per person or €9,200 per couple. As a result, there is no income tax on this amount.

The charges are levied on the gain element included in the withdrawal, and this will depend on the amount by which your contracts have increased in value since you took them out (they are levied in proportion to this). The charges will be levied at 17.2% on the amount of this gain.

They are levied directly by the assurer, so if you wish to remain in the income tax-free amounts, you will receive less than the €9,200.

Reader's query answered by Hugh MacDonald

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