French Wealth Tax - UK Residents, Do not Miss the Deadline!

French wealth tax (impôt de solidarité sur la fortune - ISF) applies to UK residents whose French assets have a net value of more than €720,000 (£ 472,000).

The taxable base comprises the fair market value of the assets owned by the taxpaying household (husband & wife or cohabiting couple) as of 1st January. The liabilities relating to these assets (e.g. mortgage on a property) may be deductible with proper supporting documents.

However, this tax does not apply to all assets and there are a number of exclusions, in particular on businesses and non-resident financial assets.

When applicable, the ISF tax rate is based on the following (Euros):

Below 720,000		0.00%
Between 720,000 and 1,160,000		0.55%
Between 1,160,000 and 2,300,000		0.75%
Between 2,300,000 and 3,600,000		1.00%
Between 3,600,000 and 6,900,000		1.30%
Between 6,900,000 and 15,000,000		1.65%
Above 15,000,000		1.80%

UK residents must lodge their ISF Tax Returns with the Recette des impôts des non-résidents(9, rue d'Uzès 75094 Paris cedex 02) and pay the tax due on 15th July at the latest. For French tax residents, the deadline is on 15th June at the latest.

If you do not submit your return or if you underestimate the value of your taxable assets, you will incur penalties of up to 80% of the tax payable.

For further details and assistance, please contact:

Patrick Delas
T: 0208 394 6387
E: delasp@russell-cooke.co.uk