Plans to relax the current rates of wealth tax in France could prove to be a very attractive prospect for British people who are tiring of high tax and austerity measures in the United Kingdom.
The President of France, Nicolas Sarkozy, has proposed to completely abolish French wealth tax. At the moment, residents of France with assets exceeding £675 are made to pay a wealth tax between O.55 percent and 1.8 percent. This much is lower than the current highest rate of income tax in the United Kingdom, currently at an incredibly high rate of 50 percent.
The new plans for France would see even that minimal charge scrapped, and the whole point is thought to be to lure more wealthy expats into the country.
The British Consul estimates that there are currently around 500,000 Brits living and working in France, and this number is suspected to increase when tax rates become even more attractive.
A representative from Le Tour de Finance, a French organisation who deal with assisting foreign expats in Frances, said: “The proposed abolition of the wealth tax could see France become a real alternative to residing in the UK. As the UK faces years of austerity that include high taxation and a reduction in public services it’s likely those who can afford to leave will. The low value of Sterling is still a hurdle to many but should we see the value of the pound rise then many will choose the expat lifestyle over the grim reality of life in the UK, sell up and leave.”