My PEP did not benefit from 65% reduction
You replied to a query (Connexion, July) on the tax payable in France from a capital gain on a share sale, saying that as the shares had been held for more than eight years a reduction of 65% would apply to the gain. In 2016 we cashed in a PEP held since 1996, giving rise to a sizeable capital gain. Hoping for a similar reduction, we spoke to our tax office but were told it did not apply. It may help others in this situation if you could give background information on this. Plus, on our 3916 tax form, beside the list of UK bank accounts, is mention of declaring ‘assurance vie’ contracts. What, if any, UK investment plans fall into this category? J.H.
Your gain would follow the same rules as the sale of shares since PEPs and ISAs are treated in exactly the same manner for capital gains.
Quite why your sale was treated differently by the tax office I cannot see, based on the details given. There is no reason why it should not have benefited from the allowance.
It may be best to see a professional to make a claim for a correction. An ‘assurance vie’ contract is simply a Life Investment Bond, whether UK or international.
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