-
Three charged with taking bribes to provide false French tests for residency cards
The charges relate to the test de connaissance du français. It is thought that more than 250 applicants could be involved in a region of west France
-
DHL strike hits Christmas deliveries in France
‘All packages will be delivered even if they are a little late’, says DHL spokesperson
-
How to plan for a comfortable retirement in France
Rob Kay, regional director at Blevins Franks, offers advice on tax, pensions and planning for retirement
Qrops tax will hit policies out of EEA
A tax on transfers from a British private pension into a ‘Qrops’ fund overseas, announced in the UK’s Spring Budget, could affect Britons moving to or living in France who opt for a Qrops located outside of the European Economic Area.
The tax –25% of the fund value – does not apply where a Qrops is located in the EEA and where the holder of the pension is also living there. This refers to the EU plus Iceland, Liechtenstein and Norway, which participate in the single market and its free movement rules.
However, it does apply if the Qrops is located outside the EEA, unless the holder of the pension also lives in the same country as the Qrops.
It is worth noting that the reference to the EEA leaves open the question of what will happen when the UK leaves the EU and whether the rule will be changed.
The 25% Overseas Transfer Charge (OTC) is applicable immediately. A Qrops is a ‘qualifying recognised overseas pension scheme’.
Further exemptions from the tax include where the Qrops is an employer-sponsored occupational scheme, overseas public service scheme or a pension scheme established by an international organisation of which the holder is an employee.
As well as initial transfers, it is intended that the rules will apply to transfers from one Qrops to another if this is within five full tax years from the date of the original transfer of benefits.
For people living in France the rule on the pension holder being in the same country as the Qrops would not apply, as there are currently no approved French schemes.
Other than the Qrops charge, the budget included few measures specifically impacting expats, although a personal tax allowance rise from €11,000 to €11,500 may benefit some people with UK taxable income. A planned reduction in the allowance before dividends are taxed should not affect French residents as they are no longer being taxed at source. Similarly, proposals to increase class 4 NICs, which were later shelved, would not have affected Britons in France because they are not paid by expats.