Purchase of its main home with the : precise details of the tax department

Firstly-reaching can “break” their savings plan reprocesses popular to buy their main home. In order to smooth the tax on this capital, they can ask an imposition split over five years, as explains it a tax instruction

At the time of liquidation of their obligatory retreat or at the sixty years age, the holders of a savings plan reprocesses popular , which is untied normally by a life annuity, can from now on “break it” in order to obtain a capital intended for the purchase of their first main home. This measurement of the law carrying national engagement for housing known as “law ” has just been the subject of the tax instruction 5 published in the official Bulletin of the taxes of December 31st, 2007.

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Combatants of on the previous day and today, profit from an exceptional retreat

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The imposition of the capital resulting from the

On the tax level, the capital is taxable with the income tax, according to the rules of the boarding houses and retreats. However, on request and irrevocable of the recipients, the capital can be the subject of an imposition split by equal shares over the year of the payment and the four years following. “The whole as of these provisions is applicable to the whose result intervenes starting from July 17th, 2006, date of input pursuant to law ” specifies the tax instruction. In fact they can be implemented to the concluded before this date.

Correct procedure for the split imposition

Let us take the example of a member of a , who asks at the time of the liquidation of the rights of his boarding house under a mandatory plan of old-age insurance, the total payment in the form of capital, of its saving with a view reach the first property of its main home. This private individual obtains a capital of 67 140 euros.

If he chooses the regime of split imposition, he will be imposed on the income according to the rules of the boarding houses and the retreats at a rate of 6.000 euros, under each year 2007 to 2011. On a practical level, this taxpayer must mention on his overall statement of the incomes 2.042, in addition to the amount of his boarding houses, the fifth of the amount of the payment in capital on the lines ACE or of framework 1. And this, even if it means to stripe as a preliminary, the amount of the boarding houses preprinted.

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What a ?

A is a subscribed insurance policy in an individual way. The saving will be versed to the subscriber with his departure with the retreat, in the form of life annuity.

The subscription consists in adhering to a “grouping of individual saving for the retreat”, within an associative framework. An inspection committee of the association of the members in the plan is charged to take care of the interests of the participants.

Who is concerned?

Everyone can adhere to a , whatever its age or its professional statute.

Near which organism to address itself?

are proposed by the firms concerned with the code of the insurances, the institutions of precaution or the organisms mutualists.

Which are the advantages of the on the tax level?

As from the imposition of the incomes of 2004, the pay subscriptions by each member of the household for tax purposes with the and, if necessary, the regimes of supplementary pension and comparable, are deductible from the assessed income.

For each member of the household for tax purposes, these contributions are deductible under a roof equal to 10 % from the net amount of professional expenses of its incomes of occupation (employee and nonpaid) of the previous year:

 retained within the limit of 8 times the roof of social security of the previous year (that is to say to the maximum 80 377 € for contributions poured in 2004), with a minimum equal to 10 % of this same roof (2 918 € for 2004);
 and decreased of the amount of the contributions deduced from the incomes from community activity from the previous year to the bond from the saving reprocesses not legally obligatory (contributions with the corporate mandatory plans of retreat additional “Article 83” and, for their entire amount or partial, contributions with the regimes or optional contracts of the non wage-earning persons known as “” or “agricultural ”, as well as additional amount of the employer with the (see hereafter).

The been used for the result of the is taxable according to the same procedures as the boarding houses and retreats been used by the regimes of old-age insurance or supplementary pension (, …).

A protected saving

The assets of the “are confined” so that to in no case creditors donot can exert rights on the saving accumulated by the French with a view their retreat. The assets of each are thus imperceptible, even in the event of bankruptcy of the manager.

What does it do without in the event of death the member to the ? The protection of the spouse is assured

The contract can provide for a guarantee death: that the death takes place before or after the putting into operation of the life annuity, the latter is then versed with a recipient designated in the contract or, failing this, to the spouse of the member. The can be transformed into a temporary revenue of indoctrination poured with minors. What does it occur in the event of disability?

The contract can provide for a guarantee in the event of disability after the accession with the . In this case, the member receives a revenue of disability before the provided for age of his departure to the retreat.

What becomes the old individual contracts?

No existing contract is called into question.

To choose a collective operative paragraph: the

The (savings plan for the retreat collective) is a savings plan wage set up within the framework of the firm. It can be created only if the possibility is also offered of choosing a plan of shorter duration: . (corporate savings plan) or . (savings plan between firms). As for the , a is versed with the member as of his departure with the retreat (the plan can provide for the delivery of a capital). The voluntary payments of paid (except sums resulting from the participation) can amount to 25% of its rough annual remuneration.

Who is concerned?

An employee can adhere to the of his firm and only to the aforementioned. The company heads and social agents (chairmen, managing directors, managers, etc) of the firms employing at least one and with more the hundred paid ones can profit from a

Is the compatible with the ?

The law makes possible the two accessions.

Which is the contribution of the employer and his advantage for the employee?

The firm can abound the voluntary payments of paid (or the leader) within the limit of triple of these payments (with a roof fixed at 4.600 €.

The additional amount deductible from the taxable profits of the firm and is exonerated from the income tax for the recipients.

In the event of interruption of the payments, the individual funds of the profit employees continue to be remunerated. The rights of each employee are transferable on another level of comparable nature opened by a new employer.

What becomes the .?

. (Partnership Plan of voluntary salary savings, launched since January 1st, 2002) are replaced by the new operative paragraph and could be transformed into until December 31st, 2004.

What does it occur in the event of disability or of death?

Cases of anticipated releasing, provided for by decree, allow an exit of the plan without penalty in the following cases:

 death of the recipient, joint sound or the person who are linked to him by a civil pact of solidarity,
 expiry of the rights to the unemployment compensation of the participant, disability of the recipient, his children, joint sound or the person who are linked to him by a civil pact of solidarity,
 situation of over-indebtedness of the participant,
 assignment of the sums saved the acquisition of the main home or the cleaning up of the main home damaged following a natural disaster recognized by ministerial decree.

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GLOSSARY

Additional amount

It is a payment carried out by your employer on your Savings plan undertaken . The amount of this aid depends on its generosity but also on the sums placed by your care on the . This gift can go up to three times the payments which you carried out, with the proviso of not exceeding 2.287 euros a year 18 700 francs). If you buy shares of your own society, the roof passes to 3.430 euros 73 307 francs). To note that the additional amount cannot depend on the appreciation which concerns your employer your work.

Assets allocation

The finance professionals use this expression to explain you (like every month the Income does it) which one should not put all its eggs in the same pack. To allocate its capital, it is thus to distribute its saving between various placements in order to reduce the risks and to obtain a regular average profitability in time. Within the framework of the management of a stock exchange wallet, the assets allocation indicates the distribution of the saving between the liquidities, the obligations and the shares. Within the compartment made up exclusively of shares, the money can be affected by geographical area and line of business.

Tax credit

It is a tax credit. To profit from it, it is necessary to be shareholder of a French firm which distributes dividends. The amount tax credit it corresponds then to half of the paid dividend on your account. In practice, you state the dividend increased tax credit it and, then, the administration deduces this last from the amount of your income tax. This mechanism was installed to avoid a double taxation of the dividends, already taxed with the bond with the tax on the earning with society. If you manage your wallet within the framework of a Savings plan in shares, tax credit is versed for it on your account and you do not deduct anything of your income tax.

Recipient

Nominate the person who will cash the capital of your life policy, after your death. It can be a question of your spouse, a child, or any other person who are particularly expensive to you. So that this saving does not remain in the cases of the insurer after your death, you can be tried to inform the recipient of the gift that you intend to him. But, in this case, will know that if it accepts it by advance while being made known near the insurer, you will not be able to change recipient never again, nor to carry out withdrawals, even partial, without its authorization. This is why, there is preferable to remain discrete on your intentions and to designate your recipient by will written in the notary. You will be thus with the shelter of the bad surprise.

Capitalization

The retreat by capitalization is a formula of individual saving where each one accumulates money in its corner with a view the constitution of a capital. This saving can be placed on various supports, of which the life assurance. The retreat by capitalization is defined as opposed to the retreat by distribution, system in which the contributions of paid and the free lances are used to pay the boarding houses poured with the current pensioners.

Deducted expenses

The life assurance is a powerful placement. However, of the companies still market products very penalizing for your saving. These contracts told “to deducted expenses” take, with the subscription, the expenses on all the payments to come. Thus, the contributions of the first, and sometimes even as the second year, serve to pay the Commissions of the insurer and the salesman. And capitalization begins only the second, even the third year. Concretely, the deducted expenses reduce the output of your saving. And if you want to recover your capital before term, you are likely to perceive a sum lower than that of your payments. Before signing your contract, thus redouble vigilance. The deduction at source meets especially in the contracts with one duration periodic payments of at least ten years and which are dedicated to the retreat.

Liquidity

It is the possibility of recovering its money. Thus, the Booklet has, the #9B392C Booklet and the CODEVI is among the most liquid placements of the market, because you can constantly carry out withdrawals without any penalty. On the other hand, if you hold shares of or shares of society not - dimensioned and that you wish to sell them quickly, you are undoubtedly obliged to accept a strong rebate compared to their actual value. These products are thus not very liquid. By extension, the liquidity of a quoted on the stock exchange share corresponds to the daily volume of transactions, i.e. with the number of bonds which change hands during a meeting of Stock Exchange. The more liquid one share is and the more you can be reactive. Indeed, if the volume of exchanges is important, it is easy to buy (or to sell) with a limiting exchange rate which you fixed and for the desired quantity. Contrary, the liquid bonds not very can see their suspended quotation several hours by Euronext, the organizer of the Parisian market. It is what arrives when the number of the purchasers and the salesmen is very unbalanced.

Mandate of management

Legal term which indicates the contract that you sign when you entrust the management of a rental housing or a stock exchange wallet to a professional. More or less regulated according to the trades, these contracts are in the beginning many litigations. To avoid the problems, the role of the professional, his Commission and the nature of the management which you wish must be clearly defined. Within the framework of the management of a wallet of transferable securities, specify what you understand by a careful management, balanced or dynamic. If these conditions are met, the mandate of management will avoid you managing yourself your money and will make you profit from the expertise of a professional, which, a priori, must enable you to obtain a higher profitability

Levy at source

It is a directly versed deduction at source with the tax authority by the financial institution which holds your placement. The rate of this taking away is identical for all the taxpayers. Concretely, for the incomes of certain placements (super-booklets, accounts in the long term, obligations…), you have the choice between a levy at source to 25 % or the income tax. Knowing that, in this last case, you will be also forwarded to a social sample of 10 %. The choice between these two options depends on your level of imposition. The higher it is and the more you may find it beneficial to choose the levy at source. If you choose this optional tax regime, you must indicate it to your banker.

Renunciation

After having subscribed a life policy, you have one thirty days period during which you can reconsider your decision. If it is the case, you will recover the entirety of the versed sums. During this “time of renunciation”, the insurer has the choice between placing your saving in monetary SICAV or investing it directly on the stockmarkets, by adhering to the option of management which you determined with him. The companies which directly invest the collected funds assume the risk of retractation of the subscriber. If the stockmarkets fall, for example of 10 %, before the thirty days expiry, the insurer takes this loss as his responsibility in the event of renunciation of the saver.

Usufruct

At the time of a succession, it happens that there is a stripping of property. This operation consists in separating two rights which are normally joined together: usufruct, i.e. the right of use of a good (for a housing, to live it or rent it to receive rents), and the naked-property, which are a future right to the freehold with the death of the usufructuary. The stripping of property is also a technique of desfiscalisation. While giving, for example, the naked-property of your dwelling to your child, you can continue to live on your premise while reducing the rights to pay. The saving in tax varies according to the age of the giver. If you have between 50 and 60 years, the chargeable basis of a good forwarded in naked-property is equal to its actual value minus 30 %. And, with the death of the usufructuary, the bare owner recovers the full ownership of property without paying taxes.

Volatility

It is an risk indicator of a quoted on the stock exchange bond or a SICAV. The larger volatility of a share is, the more it is speculative. In technical term, volatility is the amplitude of the variation of an exchange rate for a given period. The statisticians speak about variance or standard deviation. As example, the average volatility of the SICAV French shares was slightly higher than 22 % in 2000, with considerable differences between the funds, since the least risky displayed a volatility lower than 5 %, against more than 40 % for riskiest. What does not want to say that the latter are less good. They are addressed simply to a category of savers who agree to take risks in the hope to carry out more important gains.

Net assets value

Indicate the price on the one hand SICAV or CPF. This price integrates the management expense, but it does not understand the deposit charges on the payments nor the removal costs. To determine the sum to spend at the time of the subscription of shares of SICAV, you must take account of the deposit charges, often negotiable, ranging between 0,5 and 5 % of the net assets value. When you wish to resell your shares, you will have to deduce from the amount of your saving the removal costs, fortunately increasingly rare. The lower the potential of gain of the funds is and the more you must attach importance to the expenses. To pay 3 or 4% at the entry of a SICAV shares is more acceptable than 3 or 4% at the entry of a monetary SICAV.

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Combatants of on the previous day and today, profit from an exceptional retreat

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