Expats have nine months to 'clock in' or lose their state pension

If anti-fraud forms are not completed and returned within several months the Government will cut off ex-pats' pensions.

Since 2013 the Department for Work & Pensions (DWP) has been making expat pensioners fill in official forms to stop their friends and relatives fraudulently claiming their state pensions after they have died. If forms are not correctly filled out and returned within nine months, the DWP will assume pensioners are dead – and will stop their pension payments.

The forms are sent out on average every 2 years, however, officials send them out more frequently to expats living in countries defined as “high risk”. They have to be signed by the pensioner and witnessed by a neighbour. The requirement applies to the many countries, including France, that do not automatically share the relevant information with the UK.

Now is the time for Britons to buy property in Europe

Jim Mellon, Britain's answer to Warren Buffett, says the euro has hit the bottom and now is the time for Britons to buy property in Europe.



The combination of favourable exchange rates and comparatively low house prices makes purchasing on the continent the investment to make.



That being said, the currency markets are incredibly volatile at the moment; the cost of a 200,000 euro property was £6,000 more expensive last week than it was the week before so timing is key.



Entrepreneur and investor Jim Mellon has reportedly amassed a fortune of £850m by making the right calls and identifying various key trends or "money fountains".



He built his reputation after making spectacular amounts during Russia's transformation in the 1990s and more recently has seen his bold views on biotech pay off. Sometimes called Britain's answer to Warren Buffett, he co-authored Cracking the Code three years ago, which correctly predicted biotech investments would take-off.



In a new series of video interviews with Telegraph Money, he shares his views on the best investments today, how he built his fortune and his worst investment mistakes.

Personal wealth warning for pension freedom

The new “pension freedom” regime will come into being on 6th April 2015.



This is potentially very welcome news for retired British people, but it comes with a large personal wealth warning, and a need for personal responsibility. You need to be fully informed on how all your options affect you personally before you take action. Remember your pension fund is exactly that – designed to fund your retirement, it was not designed to fund a house purchase, but take care otherwise you could get it very wrong.



If you have a defined contribution schemes, from April 2015 you can draw down (withdraw) as much of your pension funds as you like. From April 6, 2015, there will be no limits on how much money can be removed, but all withdrawals outside of the 25% tax-free cash will be treated as taxable income. You can take a series of lump sums from your pension funds without having to enter into a drawdown policy. However, you need to understand the French tax implications – and it can, in fact, provide interesting opportunities, so we have teamed up with a leading firm of International Financial Advisers to provide all Allez-Français clients with suitable advice.



The 55% pension ‘tax upon death’ will be abolished, including annuities.  This means that your beneficiaries can receive the balance of your fund tax free if you die under age 75, or pay income tax or 45% if the fund taken as a lump sum (for the year 2015-16) if you are over 75. This does not affect final salary pensions.



From April you can transfer a defined benefit scheme into a defined contribution scheme - but be aware that you could lose valuable benefits, so it may not be the best decision for you.



Deciding what to do with your funds now could be one of the most important financial decisions you ever undertake. Taking suitable professional advice from a professional and regulated adviser will give you peace of mind, whilst ensuring that all the complex rules are followed and suitable advice for you is offered.



For more information please contact Peter Elias for referral onwards – sales@allez-francais.com



This can involve an initial consultation by phone with our advisers.



It is essential to consider the tax implications in your country of residence to establish what would work best for you.



Be aware also that pension schemes offer sound UK inheritance tax protection, whereas once the cash is back in your estate it could be exposed to inheritance tax as well as local succession tax in Spain and France. However with expert advice you may be able to avoid or lower your liabilities.



This article can only cover the key points of the new legislation and only provide a summary. There are also other elements you may need to consider. Sound financial planning and personalised advice is crucial, particularly for those with larger funds. Do not make any decisions until you have all the information and understand all the implications.

Concern for expats selling property in France

The stronger £ over the last 12 months has seen a significant increase in buyers coming back to the French property market.

But, as always, there is a flip side to the coin. In this case it is for sellers planning to sell up and go back to the UK, as they have seen the price of their house reduced by over 15% during the last year, purely by currency movements.

In addition, they have probably had to reduce their asking price if they have been on the market for a while, so have endured a “double whammy”.