DISCLAIMER

1. AFA Expertise Expert Comptable DISCLAIMER Our comments are not exhaustive and are limited to broadly outline the consequences of doing business or becoming resident in France. They do not constitute professional advice or a client - accountant relationship. The information provided is not suitable for tax analysis. You are invited to make a personal consultation to review your personal circumstances before taking any decision. AFA EXpertise 2014

2. Who are we ? • AFA Expertise SARL Expert Comptable UK Firm – AFA Expertise LTD London • Principal - Joanna Reintjes Certified Accountant and Chartered Tax adviser Expert-Comptable AFA EXpertise 2014

3. AFA Expertise in France • International firm • Services - Accounts - Business creations - Year end business & personal returns - Back office incl payroll & TVA returns - Advice - Taxation – planning and compliance - Transfer pricing - Capital gains tax issues - Property transations - Cross border transactional advice In English or French! Throughout the whole of France AFA EXpertise 2014

4. FrenchTax residency • Home • Centre of economic interest • Number of days in France • UK provisions now tightened up – statutory residency test AFA EXpertise 2014

5. Residence in the UK Extract HMRC Guidance on residency HMRC6 It is important that you understand what we mean by ‘resident in the UK because this will determine what UK tax you have to pay. There is no statutory definition of ‘residence’. Instead, it takes its normal, everyday meaning.It is possible to be resident in the UK under our tax rules and at the same time be resident in another country under that country’s tax rules. This is sometimes referred to as ‘dual residence’. AFA EXpertise 2014

6. Capital gains tax for French residents • Flat Rate 19% • CSG 15,5% • Taxation on world wide gains • Double tax treaties • New provisions Sept 2013 AFA EXpertise 2014

7. Capital gains tax for non residents • Flat Rate 19% EU residents • Flat Rate 33,33% non EU residents • PLUS CSG 15,5% - new provision August 2012 now also applies to non residents • Taxation on French property gains • Double tax treaties AFA EXpertise 2014

8. Protection • Exoneration for capital gains tax on sale of French home – principal residence exemption • Conditions – « habitual residence test » • Establishing French residency • 2 year rule EU longer for non EU • 34,50% tax saving! AFA EXpertise 2014

9. Sale of principal residence • Conditions • Habitual residency • Proof of fiscal residency – avis d’imposition • Expenses – credit card expenditure, electricity consumption,car servicing • Taxe d’habitation bill AFA EXpertise 2014

10. Sale of property as non resident – new rules Sold August 2014 260 000 Bought 2005 200 000 Eu resident Capital gains tax 3254 See handout AFA EXpertise 2014

11. Expenses Allowable • Reconstruction • Increase habitable space • Improvement Not allowable • Materials • « Own » time spent • Salariedbuilder • Repairs –   gros  • Expensesusedagainstincometax AFA EXpertise 2014

12. The lettings trap! • Gite let for 10 years on réel regime • Propertycost 175000 • Depreciationagainstincometax 52500 • Sold for 285000 • Allowable base cost Only 122500 • Extra CGT to pay 18113 Euros AFA EXpertise 2014

13. Abattement – capital gain AFA EXpertise 2014

14. Additional provisions • 25% special deduction CGT • Fiscal representative for non residents – extra cost! Process! • Keep all your receipts • Use registered artisans • Decennale • Keep proof of payment • SCI • Abattement CSG still over 30 years AFA EXpertise 2014

15. ? Questions? AFA EXpertise 2014

16. An English style service • We are not just « English speaking accountants » • We act as an interface bewteen you and the French/UK authorities • The key to our uniqueness is that we can interpret your « anglo » expectations and help you to really UNDERSTAND and PLAN your personal or business affairs around the French & overseas systems. AFA EXpertise 2014

17. The Team • Joanna Reintjes is a bi-lingual dual qualified accountant and chartered tax advisor with many years' experience, and she works with a team of French and English speaking staff in responding to client needs. She has lived and worked in France for many years, speaks German and Spanish, and has worked previously in European finance and international taxation.  Joanna is registered to practice UK Tax and audit services as well as being an Expert Comptable. • Our team includes ;- Rosemarie Hendy – English speaker who ran her own business in France before joining AFA Julie AMY - English speaker who also runs her own business in France Aurelia De Almeida – Assistant Accountant Marine Gouet – DCG Trainee Angelique Bourgeat – BTS Trainee AFA EXpertise 2014

18. Summary of Services • Accounts and legal compliance • Business creation and planning • Assistance with arranging finance • Autoentrepreneur • A-Z back office • Payroll including social audits • TVA • Taxation advice and compliance • Property tax • Employment compliance • UK & French Tax planning • UK exit planning and tax refunds AFA EXpertise 2014

19. Focus on Tax Services • Income Tax • Wealth tax • Corporate tax • TVA • Bureau de representation • Payroll • Social taxes including inspections AFA EXpertise 2014

20. Partners • French • Lawyers • Notaires • Banks • Avocats fiscalistes • Anglo phone businesses • Anglo info • Heslop Platt – French law specialists • Siddalls • Traductions Hilary Reynolds Isabelle Chevalier • Estate agents – Delamarche Agence Arguenon • Money Corp • BML AXA Agence Dinan AFA EXpertise 2014

21. How to contact us AFA EXPERTISE SARL 1 LA TOUCHE GILBERT 35610 SAINS experts@afaexpertise.com Afaexpertise.com Office 02 99 48 72 88 Jo Reintjes 06 20 28 71 44 AFA Expertise Ltd Janet@rothera.com Units 15 &16 7 Wenlock Road London N1 7SL AFA EXpertise 2014