Assurance-Vie Question

Hi all, a quick assurance-vie question that I cannot seem to find the answer to if anyone can help.

If we withdrew a lump sum during the initial 4 years of say €17,000 I understand rather than paying tax at source at 35% we can choose to declare this as part of our annual tax return and by doing so it would be taxed as part of our annual household taxable income. If the €17,000 was in reality our only income as we are living off savings and it therefore falls below net taxable income threshold for a couple of €27,559 would I be right in thinking there would be no tax liability? I am trying to understand whether by doing it this way we avoid the very high tax level applied to the gain of withdrawals in years 1-4 .

Many thanks for any advice.

Hi Georgie,

First of all, income tax (or the 35% lump gain tax) is levied not on the €17,000 but on difference between sums you put on the assurance-vie and its current value (ie the gains you earned during those 4 years).
Secondly, you’re right. If the respective amounts are under €27,559 (for 2017), there will be no tax liability provided you opt for its inclusion into your family revenue. Once you have selected this option on request of your insurance company, you cannot change it.
Hope this will help.

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Thanks Christian that helps very much.


Re-awakening an old thread rather than cluttering with a new one, I have a question about Assurance Vie.

Never considered it before, and still don’t really, but noticed something in a ‘lettre’ from our bank which made me think about it.

Then I got to this bit

vos contrats d’assurance vie confondus pour les versements effectues avant vos 70 ans.

Does this mean that starting one after that age is not applicable?

As I said, not really interested but what caught my eye was mention of choice in which children to exclude from inheritance in face of the general legal rules not to.

One of the benefits of an assurance vie is that you can pass money without attracting IHT in France (limited). After 70 this is reduced so basically it means you can’t put loads of money into an assurance vie on your death bed to circumvent the IHT… hope that makes sense

Thanks Dave, and welcome to the forum. More or less what I thought and, as I am well past 70 I am glad to be proved right in my decision before I read this thing from the bank. :smiley:

After 70 the max you can pass on tax exempt is €30,500.

Is that a total, or to individual inheritors?

In total.

OK thanks. :smiley: