We only use

We only use jurisdictions for pension transfers that are within HMRC regulation and in the best interest of the client to move their pension with a full explanation of the options, advantages and disadvantages. The current pension regulation still provides a marvellous opportunity for people to take control of their funds inside their pensions and have more flexibility for income and cash. It’s quite a complex subject but to try and explain it without taking up too much space, currently with UK providers, the only option is to have an annuity. These are based on interest rates and longevity, the former being very low. Once you have exchanged your pension pot for an annuity you can’t change your mind and it is fixed for life. Nowadays people want more flexibility and choice which would include the choice of when to take income, how much and for how long and to pass the residual balance to their loved ones. Please do contact me if you’d like obligation free information or just a chat. Question: I have about £100,000 lump sum from my pension in the UK. When I move to France I wonder if there is a savings account or vehicle that I can put my money in that will pay me interest? Answer: Jennie Poate Beacon Global Wealth As a UK tax resident, you can draw 25% PCLS or Pension Commencement Lump sum tax free. However as a French resident you have an obligation to declare the income and pay tax on it. There are several ways this can be taxed but the usual is that a 7.5% fixed rate tax would be levied plus a now new 7.1% CSG or ‘social charge. So if you move to France before you effect the drawdown, on that basis, already £14,600 is payable in tax. There are other ways this can be paid so check with your accountant or adviser as to the best route. It would be prudent to keep some funds in an ‘emergency’ account running alongside your current account so that if for instance the boiler breaks down you have instant access to funds. * A Qualifying Recognised Overseas Pension Scheme, or QROPS, is an overseas pension scheme that meets certain requirements set by Her Majesty's Revenue and Customs (HMRC). A QROPS must have a beneficial owner and trustees, and it can receive transfers of UK Pension Benefits. **The European Economic Area (EEA) is the area in which the Agreement on the EEA provides for the free movement of persons, goods, services and capital within the European Single Market, as well as the freedom to choose residence in any country within this area. The EEA was established on 1 January 1994 upon entry into force of the EEA Agreement. There is more to it than this but with the current issue of Brexit ongoing we’ll have to see if there is any change for the UK or not.

There are several tax free bank deposit accounts; the nearest equivalent being a cash ISA. The interest rate is a government set rate currently (June 2017) 0.75%. There are two types of account and you can hold them both: Livret A: in which you can place a maximum of €22,950 per person plus accrued interest Livret de Développement Durable: In which you can place a maximum €12,000 per person plus accrued interest. All banks and the post office offer them. They aren’t spectacular at giving you interest but keeping a level of available cash is always a good idea. With the remainder of the cash, there are several things to consider. Do you want income? If so how much? Do you want a nest egg? If you are investing more than €30,000 and are under the age of 70, then the following option could be considered: A ‘Contrats d’Assurance Vie’ or life investment policy. The short version of what is means, is that it is an open ended investment policy that can potentially hold multi-currencies and different types of investment according to need and the level of risk you want to want to take. It has great tax advantages for the policyholder as well as inheritance benefits. There is no limit to how much you can place in one of these vehicles but they usually require a minimum of £20,000 - £30,000 and some offer the opportunity for monthly contributions. They are often considered an 8 year policy as the tax benefits ramp up at that stage but they are generally open ended. Some companies have a penalty clause for early closure Want to know more? Then please do contact me for more information, there’s no obligation. Jennie Poate can be contacted at: jennie @ bgwealthmanagement.net Beacon Global Wealth website: BGWealth.com See next page for more questions The information on these pages 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 on thiese pages. The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI).All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licenced and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B