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Do I declare interest within UK investment bonds?
My wife and I moved to France in 2006. We are both retired and have incomes from pensions. We also have some UK investments called flexible investment plan, flexible options bond, capital investment bond, investment bond etc, depending on the company they are with. We told the French tax authorities of these bonds and sent them a list of the companies. We do not take interest from them and do not need to. Any interest they make stays in the bond. Am I right that we do not have to declare this interest? J.R.
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Any growth on investment bonds that stays within the bonds is not liable to taxation, though if it is a French bond with part invested in a fond en euros fund, this is liable to the social charges within the contract.
It is only in the case of withdrawals that the gain element of the withdrawal should be declared, net of any UK tax paid, if applicable.
Reader's query answered byHugh MacDonald
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