Webinar on “Banking for British Expatriates in the context of Brexit”
Questions & Answers
1. If a credit card is swallowed by the ATM. How can I get it back?
Answer: The Client can retrieve his/her card within 48 hours at the Branch where the card was swallowed
2. Is there a bank account in France without bank fees for having a bank card?
Answer: CA have the Globe Trotter card offer for clients under 30. As of next April, there will be the « No Fee » NBQ card depending on the options taken
3. Which UK banks are closing accounts, or are likely to do so, and to hear which banks intend to leave accounts exactly as they are now.
Answer: Lloyds and Barclays have been the ones reported to close non-resident accounts for holders based in the EU/EEA. Others, such as Santander UK, Natwest, HSBC are monitoring the subject but have not confirmed they would close existing accounts.
4. As a volunteer treasurer for a UK charity, I would like to continue that role after I move to France mid-December and apply for residency. I am on the bank mandate for the charity's NatWest/RBS account and their account is held in London. Would there be any problems with me continuing to be on the mandate as a French resident?
Answer: As long as the charity is UK based (and therefore with a UK address), I cannot see why banks would close the charity account or prevent one of its signatories based in the EU to carry on using the account (same goes for EU-based company directors or shareholders of British companies)
5. I have held an account with Natwest for over 38 years. Will I lose this facility and with it the MasterCard credit card? If that is so, what is the criteria for requesting a French credit card?
Answer: In order to get a bank card, you need to open a bank account. Restrictions include: Not being barred from holding a bank account and having proof of income. No restriction on citizenship
6. We have money in the UK which we would consider moving over. I would like to know what the implications are of moving it after the Brexit date, whatever that is. The bank has resounded our UK credit cards in the absence of a UK address. Are there additional charges to bringing monies over, now the UK is out of the EU?
Answer: At the time being, the SEPA arrangement still holds after Brexit. Tarification remains unchanged: If the transfer from GB is done in EUROS, it is free of charge.
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If the transfer from GB is done in GBP, there is a fixed fee of € 14. + the exchange fees of 0.052 % (minimum € 16.95)
7. Both my husband and myself have bank accounts in the UK. This is solely to facilitate the receipt of our respective pensions (government occupational pensions for us both plus state pension for my husband.) We both pay tax in the UK on those pensions. These accounts are for our personal use and not for any foreign business financial transactions. Money is transferred from our UK bank accounts to a currency exchange company in pounds sterling only. Our UK bank does not transfer any of our money into any other currency or pay anything to any other foreign establishment. Is it likely under these circumstances that our UK bank will close our respective current accounts?
Answer: Some UK banks may decide not to serve non-resident (EU) clients any longer. But this is not related to the fact that a pension might go through the account or foreign exchange transactions. Of course, beyond Brexit implications, banks may always assess the profitability of their relationship with a client and decide they do not wish to carry on serving some clients or their accounts
8. We are a retired couple from the UK living in France permanently. On a monthly basis we transfer some funds from our UK account to a CA account as living expenses. - Will you be charging us a fee for the procedure after Brexit? - If "yes", would it be a set amount for a transfer or it will be based on a percentage of the amount transferred or something else?
Answer: There is no foreseeable change in tarification at the time being, while the UK remains in the SEPA zone. If the transfer is done in € it is a free of charge and if the transfer is done in GBP there is a fixed fee + the exchange fees if any
9. We have private pension and annuity type incomes which go to a joint Lloyds Bank International account in Jersey. Funds are then transferred monthly to cover outgoings in one sum to Credit Agric. UK state pensions come directly to our joint account with Credit Agric. We believe Lloyds Bank has not, so far, declared its intentions post Brexit. - Does the fact that our UK banking is through Lloyds International in Jersey give us any advantage? - How do we honour our UK financial standing order commitments? - i.e. monthly assurance premiums, help for grandchildren’s education etc. - Surely there will not be changes to the Income Tax reciprocal arrangements, which have existed for many years before the European Union? - Does dual nationality create any differences?
Answer: « Under the provisions of the withdrawal agreement and if your situation remains the same, your health insurance coverage and the conditions under which you are insured will not change. You will continue to receive benefits under the same conditions as you do now.
EU rules on coordination of social security systems will continue to apply after 31 December 2020, which signals the end of the transition period, meaning that your rights will be maintained. These rules provide that – if you are receiving a pension from one State and reside in the territory of another State – your health insurance will be
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covered by the State that pays your pension. This means that your healthcare costs in France will continue to be covered by the French social security system on behalf of the United Kingdom.
If you have not already done so, you must request an S1 form “Registering for healthcare cover” from your British pension fund. This document will allow you to register with the French health insurance fund in your place of residence. The form will be valid for your entire period of residency in France and will provide you with coverage under the same conditions as a person insured under the French social security system. If you also start to receive a French pension, and you continue to live in France, the coordination rules provide that the French system will directly cover your health insurance» https://brexit.gouv.fr/sites/brexit/accueil/vous-etes-britannique- en/retraite-en.html The is no impact regarding taxes in case of dual nationality.
10. I am French resident but a UK citizen. I still have Smile debit and savings accounts in UK (but no UK address now). How will I be affected after 31 December? So far Smile have not told me there will be a problem.
Answer: Smile, as part of the Coop Group, has not stated (sofar) that they would start closing non resident accounts - https://www.smile.co.uk/faqs/general/information-for- customers/PROD-11547
11. I run a successful enterprise but my clients are all UK based and pay me in sterling through my UK business bank account. I transfer money to France when I need it and pay French tax/social security. Can I continue this system?
Answer: The profits of a UK enterprise shall be taxable only in the UK unless the enterprise carries on business in France through a permanent establishment situated therein. The “permanent establishment” may be a place of management; a branch; an office; a factory. If the enterprise carries on business in France, the profits of the enterprise may be taxed in France. If you live in France and manage your business from France, the revenues are taxable in France. The currency for payments is not taken into consideration.
12. Are the rumours true that all our UK Bank accounts and investments are likely to be closed down next year-bearing in mind I am Dual Nationality French English now but my husband is not? (HSBC Joint current acct; Aviva Investment Bonds-my name only; Premium Bonds- we have some each)
Answer: No, only some banks have taken drastic steps to close accounts for EU non- residents (for instance Barclays, Lloyds). HSBC is not among them even if they are monitoring the situation for some destinations in Europe Brexit Impact - How to prepare for Brexit| HSBC UK
Brexit approach - Aviva Investors
https://www.nsandi.com/help/join-nsandi/using-nsandi-outside-uk
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13. At the moment one of my private pensions, and my state pension are paid direct to Credit Agricole. I have one small private pension paid into our UK account £360 per annum. However, my wife has both her pensions paid direct to our UK account. Our account is with Barclays, and we have heard nothing from them, could you advise us as to the solution to our possible problem. We have no UK insurances, loans or investments.
Answer: If you have not heard from Barclays, it is probably a good sign that they do not wish to close your account. But with the Covid situation, it might be worth giving them a call and cross checking that no mail or notification have gone astray.
14. I occasionally work in the UK in a self-employed capacity, this work is 'ad hoc' and not guaranteed I.e. a specific number of weeks/locations. Do I simply continue to report my earnings to the French authorities as at present? I have been resident in France for five years and have applied for a residency permit.
Answer: According to the article 15 of the Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains: Remuneration (salary) derived by a resident of a Contracting State (FR) in respect of an employment exercised in the UK shall be taxable only in France if the recipient is present in the UK for a period or periods not exceeding in the aggregate 183 days within any period of 12 months.
15. I have an unoccupied house basically now a holiday home in the UK since becoming tax resident in France in 2020. It would normally pass to my two children free of tax on my demise as the value is about £180K. It has been the family home and principal residence since 2003 when the purchase price was £130K. What are the tax implications if I sell and what could I do with that money that I don’t need? My children are taxpayers in Germany.
Answer: Capital gains are taxable in France for French residents notwithstanding the place of the house (France or UK). But if a tax was paid in UK, this can give right to a tax credit equal to the UK tax paid on the same gain. According to French law, the sale of principal residence is exempted from capital gains.
The exemption benefiting from the transfer of a principal residence will apply when the seller occupied the principal residence until it is put up for sale, that it has remained free of any occupation until the sale and that the transfer takes place within a normal period.
There are some rules according to French tax authorities:
- The house has not, during this period, been rented out or occupied free of charge by members of the owner's family or third parties. - No maximum time limit, but in a normal economic context, a period of one year is in principle the maximum period - A detailed assessment of each situation is necessary: need to study the place, the market, the price, characteristics of property
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- Need to prove the diligences carried out by the taxpayer to put this property up for sale (advertisements in the press, dealings with real estate agencies, etc.).
When the period exceeds the normal period of sale, the mere fact that the building has been put up for sale is not considered to justify the exemption of the capital gain, in particular if it appears that the asking price does not correspond to the prices charged on the local real estate market.
We suppose that the normal period of sale can be reconsidered by the tax authorities taking into consideration the situation with COVID-19.
After the sale you can make a donation to your children or keep the money or pass it on to them by inheritance. These operations will then be carried out under the framework of the Franco-German agreement (if the children are considered to have their tax residence in Germany within the meaning of the agreement).
16. Can Credit Agricole pay a standing order to a UK company?
Answer: Yes, it is possible to set up a permanent standing order directed to a UK Company as long as the client let us know of the amount and date of the standing order
17. I am retired and live permanently in France, with no address in Britain. I have had an account with Santander for many years, but if I am forced to close the account, how will I receive my pension payments? Is there a British bank willing to take ex pat accounts and would this be more expensive? I have an account with CA Charente Perigord where I have always received excellent service. Could my pensions be paid monthly into my CA account? Would the CA be able to send a monthly virement to a British payee?
Answer: Santander have not confirmed they would close any existing account for the moment (EU non-resident). Pensions could be paid alternatively directly to your French account if you provide an IBAN to your pension private company or for your state pension (check their fees for issuing an international payment). Some UK banks still open accounts for non-residents based in the EU (Natwest until the end of the year or Nationwide, Coop, just to name a few. But we do not know how long their offers will stay)
18. We make transfers via our UK bank account into the CA regularly. It all works very well at the moment, via Lloyds Bank. Will we need to change anything?
Answer: Check with your Lloyds account manager if your account will still be open as this bank has contacted 13,000 of its customers across Europe to let them know they would close their accounts.
19. I have a court of protection order to look after my mother's finance in UK. Two banks have written to me about my new French address saying that I have to confirm my mother’s tax residency status, assuming that my mother lives in France, whereas she has not left the UK. Do I have to do anything? My own bank has my French address, but has not asked about my residency for tax purposes.
Answer: I think that we need to distinguish the address for correspondence and the address of physical person beneficiary of the accounts. If your mother is a beneficiary of the
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revenues and she is a UK resident, you need to inform the banks about her address. You can inform the bank that the correspondence addresses is in France. According to the Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains, a “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof, and any statutory body of that State, subdivision or authority.
20. In the UK, Barclaycard have removed Barclaycard credit cards for ex-pats, so that we can no longer use these cards unless we have a UK address. Is there an alternative credit card (not debit card) offered by Credit Agricole?
Answer: CREDIT AGRICOLE doesn’t propose such as debit cards as known by British citizens.
21. Am I right in saying that financial services have not been part of the agenda in the current trade talks between UK and EU? Also my wife and I both receive a state pension and a Teachers’ pension from the UK which we have paid into our UK bank accounts. I realise that the state pension can be paid into a French account but have been told that the teachers’ pension can only be paid into a UK account. Where do we stand if we are no longer able to use a UK account?
Answer: Please see the latest below regarding financial services and the Brexit negotiations https://www.instituteforgovernment.org.uk/explainers/future-relationship-financial- services Some banks are still offering accounts for EU non-residents as examples given in Q.17
Also check with the bank you might choose if they require UK residence status or simply a UK address
22. Can you please comment on the possible complications and implications of receiving a large part of an income paid in GBP into a UK bank from a UK Local Government? For whom I work up to 10 days per month. They would prefer to continue to pay salary into a UK bank?
Answer: Despite Brexit, and if I understand your question well, nothing prevents you from having your salary, part of your salary or other income paid with a UK bank, even if you are a resident of France… as long as you have a UK bank willing to operate an account for a non- resident person based in the EU (France in your case)
23. I have an offshore sterling bank account with Lloyds Bank in the Isle of Man. I use this principally to receive income from rented property in the UK. I am fiscally domiciled in France. Is this account likely to be affected by the final Brexit arrangements?
Answer: It is possible to open a GBP account at Credit Agricole where funds can be easily transferred. This can turn out to be an interesting alternative
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24. I am currently able to transfer money from this sterling account to my CACP account via a SEPA payment with a delay of two or three days, with the conversion to euro being made on receipt by CACP. Is this likely to be affected by Brexit?
Answer: That possibility should still exist as the UK will remain in the SEPA zone. It might be worthwhile to check whether it might be more interesting to do the currency exchange in France, after having transferred GBP funds to a currency account (in GBP) set up in CREDIT AGRICOLE
25. My modest UK pension from HMRC is paid regularly into my French bank account in euros free of transaction charges. Is this likely to be affected?
Answer: That possibility should still exist as the UK will remain in the SEPA zone. As long as the transfer i done in € to a current account in € in CREDIT AGRICOLE
26. I am a client of a UK bank, living in France, and I am obliged to pay tax at source on a UK occupational pension. Consequently, the pension fund is obliged to pay the net pension into a UK bank account. In such circumstances, if my UK bank opts to discontinue providing me with an account, will this be because it is their commercial decision; or, is it because there is something about Brexit that prevents them from honouring a relationship that I have with the same bank for close on 50 years? When I phoned my account manager at NatWest, I was told that there were no plans in the short-term for discontinuing accounts for non-UK residents. However, the account manager said that he was unable to say what might happen later. Can a French bank such as CA open a branch in the UK (either physically, or virtually) and offer a GBP account to UK or French nationals?
Answer: CREDIT AGRICOLE is not contemplating opening Branches in the UK at the moment. Only Investment affiliates
27. Can you hold an English account with your French address on it?
Answer: If you already hold a EURO account at CREDIT AGRICOLE, you can just as easily open another account in GBP at your CA Branch
28. If I change the type of account I hold with my existing bank/building society after Brexit will they be able to refuse my request?
Answer: That is a possibility if they think it is a new account (and not just an amendment to an existing one). Especially if the new account was to provide credit facilities (cards/overdrafts). Please check with your current bank for a full assessment.
29. My wife's NHS superannuation is paid direct to Worldlink, a currency trader, who converts it to euros and pays it into our French Bank (CredAg). Will this change? - My wife's NHS superannuation is taxable in the UK and not in France, will this change?
Answer: That possibility should still exist as the UK will remain in the SEPA zone. You may want to check the Lloyds’ criteria regarding holding an account with them.
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As far as CREDIT AGRICOLE is concerned, there will be no change while it might be interesting to open a GBP account with your Branch in order to facilitate the exchange of GBP to Euros when the rate is more favorable.
- Our State pensions (NIRPS) are paid into Lloyds Bank UK and I transfer it to Transferwise, a cuttrncy trader, who convert it into euros and pay it into our French Bank (the same CredAg account). Will this change?
Answer: No change regarding currency transactions as the UK is still part of the SEPA world but check with Lloyds that they are happy to keep your account open (please refer to Q.3)
30. I would like to know concerning the British who live in France, whether banks in France are anticipating having any problems with receiving or sending certain kinds of payment between the UK and France next year or if British people in France can expect it to take longer or cost more for certain transactions.
Answer: That possibility should still exist as the UK will remain in the SEPA zone. There is no change in Credit Agricole’s policy as far as tarification goes. We will have to wait and see how Brexit negotiations evolve.
31. We do not live in the UK and do not bank there. I have a South African and UK passport; and my wife, Penelope Ward, has a South African passport. What do we do regarding our Credit Agricole account in France?
Answer: It is possible to hold a bank account at CREDIT AGRICOLE provided all EU regulations are respected (no matter what citizenship you hold) as long as you provide a proof of residence, ID and source of income.
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