HELPLINE: 
Brits leaving the UK can save up to 69% in taxes by following these four tax-saving steps, says expat finance expert Daniel Butcher.
UK residents planning a new life in France can create mega tax cuts by applying a focused financial strategy before the move.
Those with a Defined Benefit (DB) pension, or other pension scheme, should withdraw their 25% tax-free Pension Commencement Lump Sum (PCLS) before leaving the UK.
“What is tax free in the UK is not in France, and your PCLS will be taxed at the marginal rate plus 9.1% social charges,” said Daniel Butcher, founder of DTB Wealth Management. “So cash it in well before moving to the promised land and save ~39.1% tax.”
While Individual Savings Accounts (ISAs) offer tax-free gains on interest, dividends and capital gains in the UK, they lose their tax-free status in France. When you move they become General Investment Accounts (GIAs) or “compte-titres”.
“This is not a wrapper, so basically all gains, as well as the dividends, are deemed to be 100% taxed in France, this time at a 30% flat tax rate,” said Daniel. “By liquidating ISAs before leaving the UK, Brits can save 30% in tax.”
To protect liquidated funds, DTB Wealth Management advises setting up a Luxembourg “assurance vie” soon after relocating. “This is a tax-efficient investment wrapper which is popular in France,” said Daniel. “The structure means gains can grow tax-free plus provide flexible withdrawals with inheritance planning advantages.”
Securing an S1 form in France allows British holders to access UK state healthcare while living in France as well as significant tax opportunities.
“Before leaving the UK, call the NHS Overseas Healthcare Services to ascertain your eligibility for the almighty S1 form,” said Daniel. “This can bring 9.1%-17.2% social charges on certain types of investment income, including interest, capital gains and dividends.”
He added: “For example, with an S1, when you choose to withdraw the lump sum from ISA and PCLS, then invest in assurance vie, you can avoid 9.7% social charges for ever more.”
Careful planning before moving to France can significantly boost financial wellbeing, contact DTB Wealth Management to discover more tax reduction and wealth growth strategies.
