I'm looking at becoming long-term resident in France before Brexit goes through. I've got a dilemma though.
I'm well aware of Assurance Vie and PEA, but I'm wondering if I can maintain my current process instead of that.
Currently I have about £200k in stocks via a UK online platform, and let's say this £200k grows at a rate of £10k a year (5%). So, it grows and I withdraw all of the £10k. The principal amount therefore remains the same as the years go on.
What I don't understand is this:
France now levies a flat rate 30%, made up of the income tax at 12.8%, and social charges at 17.2%.
So, if I am withdrawing just £10k a year, and I have no other form of income at all, then how are the taxes levied?
1) Is the 30% levied against the entire £10k I've withdrawn (so paying £3k in tax), or just some proportion of the £10k that represents the 5% growth? (so paying just £500 in tax)?
2) Do I get to claim this against my personal allowance - is that 9800 euros or so? - and so therefore only pay tax on the bit that is above that? (so therefore paying just £56 tax instead?)
3) I've read that if you are earning (or is it just receiving?) income under 25000 euros, then you won't have to pay income tax on your gains, therefore on the modest amount I'm planning on withdrawing, that would suggest I'd be paying just over half of the tax costs above, yes?
Many thanks for any clearcut answers here,