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France 'offers tax benefits to expats'

Article Date : Wednesday, September 26, 2007       Bookmark on Facebook   Bookmark on Del   Bookmark on Digg   Bookmark on Facebook   Bookmark on Reddit   Bookmark on Spurl   Bookmark on Furl   Bookmark on Yahoo   Bookmark on Magnolia   Bookmark on StumbleUpon   Bookmark on BlinkList

People who want to move abroad to enjoy a lower tax liability have been advised to consider entering the French market.

Earlier this year, incoming president Nicolas Sarkozy introduced reforms to the country's tax regime, such as raising the inheritance tax (IHT) threshold.

As a result of the increase, only the richest people who currently live in France are liable to pay the charge upon their death.

By contrast, rising house prices in the UK have taken many people over Britain's IHT threshold of £300,000, meaning that an increasing number of homeowners could be taxed when they die.

This has prompted some to consider relocating to another country where there tax liability will be reduced.

Liz Dolan of the Daily Telegraph highlighted France as a good destination for these people, since the IHT threshold was above many expats' financial reach.

However, she recommended that people consider other tax issues, such as whether they would be liable to pay other taxes that the British government does not charge.
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