Before moving to France, there’s no doubt you will have a myriad of things to organise, think about and do – not just the packing! Here are some useful tips from a financial expert to help you consider your budget so that you have no nasty surprises later.
1. Inform the UK inspector of taxes at your local HMRC tax office that you are planning to move abroad by filling in the form P85. This will allow the UK tax office to clear up any outstanding issues before you move. You can download the form online at: https://www.gov.uk (or approach the local tax office in the country in which you live).
2. Start planning a strategy for your savings and income before you move.Some UK savings products are really square pegs in round holes when it comes to French taxation; it might be better to consider closing or changing them before you become French tax resident. Doing things in the ‘wrong’ order might create issues down the line.
3. Use a qualified authorised financial adviser who understands both the UK and French tax systems.This will help you to make informed choices about your pension options as there are proposed changes in the UK from 2015 that may affect your current thinking. Some UK pension companies for example will not allow non-residents to draw down their personal pensions, and you may have to consider moving the pension, and good advice is essential.
4. Consider your status with regard to the distribution of your estate. Inheritance planning in advance of your move can save considerable heartache later. You may include all of your assets (property and cash) wherever they based.
5. Use a competent tax adviser to prepare your first French tax return. They can also liaise with your financial advisor concerning the timings for moving/closing some investments which can be crucial.
By Jennie Poate
The information on this page is intended only as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information in this article.
