Hi - not clear on this and my bank did not fully explain the ass vie protocol.
Tax and social charges taken at source but can this be reclaimed if your income falls within the minimum taxation band. Not sure why you should automatically pay tax on the interest?
Many thanks
Hi Lynne
In my own situation… having made an indepth Declaration in May…for the previous year’s income etc… if there has been anything deducted at source which I should not be paying… the Tax Authorities do the necessary refund to me around July time…
why not ask your Bank to clarify the situation… now that you have had time to work out the questions…
Only the gain portion of an assurance vie withdrawal is taxable - subject to both income tax and social charges. The amount of income tax due will depend on how you have opted to be taxed. Either, you pay income tax (if any) based on your nominal rate of tax at the time of your annual return or, you pay a fixed rate of tax at the time of the withdrawal. The rates payable will depend on how long you have held the assurance vie contract i.e. descending rates the longer you have it.
Social charges of 15.5% (currently) are payable on the gain portion of all withdrawals from the first cent - no allowances.
Sounds like you set up your assurance vie contract on the prélèvement forfaitaire libératoire basis (taxed at time of withdrawal).
Lots of info available online.
Just for the sake of absolute clarity, are all capital withdrawals, tax and social charge free?