Declaring Assurance Vie Gains

I mentioned 20P as the Original Poster was complaining about being charged 30% tax…

I’m very confused with all this. I cashed in a stocks ISA at the beginning of this year. Although I declared its existence in my tax return annexe, I haven’t yet declared its sale. I did hear about the form that supposedly should be done within a month of the sale, but I didn’t do it. I thought I’d just wait to declare it in next years tax declaration. I’d be very glad of your advise to avoid trouble and to pay the minimum tax. I’m in a reletively low tax band (in case that effects “le barème”, to 2OP or not to 2OP is the question!).

From the impôts website

Dans le cas d’une vente de titres ou d’ actions au cours de l’année précédente, vous devez compléter la déclaration annexe n°2074, en indiquant la nature des titres, leurs prix de revient et de vente, les dates d’achat et de vente, etc.

Unfortunately the site is “under maintenance” this morning so link probably won’t work, but maybe later

Personally, if I were in your situation, I would go and speak with the folk at my local Tax Office as soon as possible.

They are not ogres.

Don’t know about ISAs but went to tax office last week to declare property sale within the 60 day limit and was told to leave it till next year so it looks as if that’s the thing to do.

Capital gains on a property sale is different category.

My understanding was that gains from Assurance Vie accounts are tax free if you have had the account for more than 7 years - even if you’ve put capital in it more recently. Do you still have to declare drawings?


I notice you’ve been on other threads for some months talking about ISA … and I’m wondering if coming into this “Declaring Assurance Vie Gains” thread might be confusing for you and for others.

UK ISA’s are very different from French Assurance Vie … and your local Tax Folk will look at your personal situation and advise accordingly.

It has become more complicated now Geof.
There is a table of taxation used by the French Impots and it depends upon the profits and the time the Assurance Vie has been held is what we understand.

If you cash in a modest amount (each year) you can avoid “tax”, but there is no escaping the so-called social charges - 17.2%
For substantial withdrawals these charges are in addition to the “privileged” rate of tax at 7.5% (as it was at the time I took out the AV) . IMHO 24.7% is not a “tax-friendly” rate - especially compared to, say, ISAs at 0% in the UK (which we don’t mention in this thread :wink:)
Because my AV tax had not been paid on time by the insurance company, I was expecting to pay the 30% “flat tax” which was bad enough, but no, the tax lady quoted chapter and verse why it should be taxed “on the barème” and I didn’t have the option of electing for flat tax.
It didn’t seem logical to me that the gains in underlying investment in stocks and shares should be treated in a harsher way because it was an AV (which I had been advised to use for its tax benefits).
As it was during my last year before retirement, the gains were on top of a full year of salary, so part of was pushed into a marginal rate of 41+17.2%.
All this on top of poor investment performance (I invested just before the financial crisis) giving a net return much less than inflation. Fortunately I got compensation from the insurance company, but the whole experience has left me traumatised, and unwilling to take any financial decision in case it is the wrong one. But knowing full well that doing nothing was probably the wrong thing as well!
I withdrew the money to buy a house in the UK, but this purchase fell through, due in part to COVID (and I have delayed finding another one because my French partner has had cancer). So until I can buy my house I will have more money in 2 UK bank accounts than is covered by the protection in case of bank failure. But I suspect it would not be easy for a French resident to open a new UK account…

It seems that only HSBC will do this but they will put every obstacle possible in the way to stop you.
I fought with their application system for 8 months last year and did finally win but it wasn’t easy. Finally managed to open an account because they contradicted themselves in 2 emails and the came back with a message that in turn contradicted the first 2! They gave me an account and a £300 apology and l am now a model client :rofl:

ISAs at 0% in the UK (which we don’t mention in this thread :wink:)

I assume no one has mentioned ISA;s because as (mostly) French residents, we do not qualify for any of those tax breaks back in the UK. I also assume at the moment they pay out very insignificant amounts of interest