French income tax is assessed on the total income of the household. If your family earns a high income you can divide it into a number of parts. Your total income is then divided by this number of parts and the income tax scale rates applied to this lower figure. Once the tax is calculated, it is multiplied by the number of parts to provide a larger number.

Age allowances
There are allowances for anyone over the age of 65, whether or not you are retired.
If your income is under 10,130 € your allowance will be 1,646 €; if it is between 10,130 € and 16,370 €, it is 823 €.

Pensions
If your pension arises from UK government service (excluding the NHS) it remains liable to UK tax (and not French tax). This can be avoided if you transfer out before the pension commences, and usually before age 59.

Company pension schemes are taxed in the same manner as salaries.

Purchased annuities are taxed differently (and more favourably). It is generally accepted that:
Lump sums as commutation of pension rights are tax free;
Annuities should be taxed as pensions, not purchased annuities, if they are paid directly or indirectly out of a pension fund accumulated during your professional working life;
Purchased annuities are liable to French wealth tax. *
(This, however, has not been ratified, and you should seek advice from an international specialist).

Employment income
Certain deductions can be made from your gross income before tax is calculated:

Minimum 10% deduction (up to 12,648 € per individual).
This also applies to pension income, but with a maximum of 3,269 € per household.
A maximum 20% deduction on the first 115,900 € salary / pension per person.
Interest on certain business loans.
Pension contributions up to 38,000 €.
Income from profit sharing schemes.

If you are resident in France but work in the UK your employment income will be taxable in the UK. It will be taken into account when determining the rate at which your other income is taxed in France.

Capital Gains
There is no tax on capital gains on death or on gifts - they are liable to succession tax instead.

EU residents who are not French residents pay tax at 16% on French gains. Non-EU residents pay tax at 33.33% on any capital gains.

Wealth Tax
If you are resident in France you will be taxed on the basis of your wealth as at 1 January each year. This is calculated on your worldwide wealth, including all residences. Rates range from 0.55% to 1.8%. If you are not resident in France you pay wealth tax on all assets within France.

Succession Tax
Like UK inheritance tax it is a tax on gifts and inheritances. Tax rates range from 5% to 60%, depending on the value of the inheritance/gifts and whether the beneficiary is a close relative.

Tax is payable between husband and wife, starting on assets over 76,000 €. Each child receives 46,000 € tax free. Grandparents can give their grandchildren lifetime gifts of up to 30,000 € tax free.