Assurance vie, PEA and your ISA: how France taxes a Brit's savings

Here's the bit nobody tells you at the leaving do: your ISA is only tax-free in the UK. Once you're a French tax resident, France taxes what it earns.

The short version

• You can keep your ISA after you move, but you can't pay in while you're non-UK resident. HMRC keeps treating it as tax-free; France doesn't [1].
• France taxes investment income and gains at a flat rate (the PFU): 12.8% income tax plus social charges, which rose to 18.6% on most investment income in 2026, making 31.4% in all [3][4].
• Assurance vie is France's favourite savings wrapper. After eight years, gains get an annual allowance of EUR 4,600 (EUR 9,200 for a couple) and a lower 7.5% income tax rate, and it's very useful for inheritance [5].
• The PEA is a French share account for French tax residents, with a EUR 150,000 deposit ceiling; after five years, gains are free of income tax but not social charges [6].
• Declare every UK account (bank, ISA, investment platform, crypto) on form 3916 each year with your French return. Forgetting costs EUR 1,500 per account [7][8].

Your ISA after the move

GOV.UK is clear on the UK side [1]:

• You can keep your ISA open, and UK tax relief continues on what's in it.
• You can't add new money while you're non-UK resident (except Crown employees overseas and their spouses).
• You must tell your ISA provider as soon as you stop being UK resident.
• You can pay in again if you come back and become UK resident.

France, though, doesn't recognise the ISA at all. To the French taxman, a stocks and shares ISA is just a foreign investment account, and a cash ISA is just a foreign savings account. Interest, dividends and gains inside it are taxable in France each year, and you report them on your French return. The UK–France double taxation convention, in force since 2009, decides which country taxes what, but in most cases it's France that taxes a resident's savings income [9].

So what should you do with it? There's no single answer. Some Brits leave their ISA alone for simplicity or because they plan to return; others gradually move money into French wrappers. Our guide to ISAs when you move abroad covers the UK rules in more detail. A tax adviser who knows both countries can check your case.

How France taxes savings and investments

Most investment income and gains are taxed under the PFU (prélèvement forfaitaire unique), or "flat tax". You can opt for the normal income tax scale instead if that works out cheaper, but the option covers all your investment income for the year.

The flat tax has two parts:

Source: Service Public, verified 30 June 2026 [3]. The social charges went up by 1.4 points in 2026, when the social security financing law raised the CSG on capital income, but assurance vie was among the exceptions left at 17.2% [3][4].

A break on social charges for some Brits

If you're covered by another country's compulsory social security scheme rather than France's, you may pay only the 7.5% solidarity levy instead of the full charges. Service Public describes this for people covered by a scheme in another EEA country or Switzerland [3]. The page doesn't mention the UK; many Brits in France with an S1 or a UK posting certificate ask about the same treatment, so check your own position with your tax office or an adviser before you rely on it.

Assurance vie: the French ISA (sort of)

Assurance vie sounds like life insurance, but it's really a tax-favoured savings and investment wrapper sold by banks and insurers. You can hold euro funds (fonds euros, capital-protected) or unit-linked funds (unités de compte, with market risk), and you can usually withdraw money whenever you like.

The tax on withdrawals depends on the contract's age. For contracts with premiums paid since 27 September 2017 [5]:

Only the gains portion of each withdrawal is taxed, not your original capital. The eight-year clock starts when you open the contract, which is why many French people open one early with a small sum, just to start it ticking.

Why it matters for inheritance

The real magic of assurance vie is on death. Money paid in before the age of 70 can pass to each beneficiary you name with an allowance of EUR 152,500 (about £127,000) per beneficiary, then 20% up to EUR 700,000 and 31.25% above [5]. For premiums paid after 70, French inheritance tax applies only to the premiums above EUR 30,500 in total, and the gains escape [5]. For a Brit wanting to leave money to a stepchild or a partner, who would face heavy French inheritance tax, this can be a lifeline. Our guide to French inheritance rules explains why.

You'll also come across "international" contracts, often based in Luxembourg, marketed to Brits in France. Some are fine and some carry hefty fees, so take independent regulated advice and never feel rushed into signing.

The PEA: tax-free shares, after five years

The PEA (plan d'épargne en actions) is the closest France has to a stocks and shares ISA [6]:

• Who: anyone tax resident in France and of legal age. There's no nationality requirement.
• Ceiling: EUR 150,000 (about £125,000) in deposits for a classic PEA; gains don't count towards it. A separate PEA-PME-ETI for smaller firms takes the combined total to EUR 225,000.
• What you can hold: mainly shares and funds of EU and EEA companies, so it isn't a home for your favourite FTSE tracker.
• Tax: after five years, gains are free of income tax, but social charges (18.6% for 2026) still apply. Withdrawing before five years generally closes the plan.

You can't open a PEA until you're French tax resident, and the five-year clock means it suits people who are settled here. If you might move on, check what happens to a PEA when you leave France before you open one.

Declaring UK accounts: form 3916

This is the one that catches Brits out. Every year, with your French tax return, you must declare each account you held, used or closed abroad during the year, on form 3916 / 3916-bis [7]. That includes:

• UK current and savings accounts, including one you only keep for UK direct debits
• ISAs and investment platform accounts
• crypto accounts on foreign platforms
• life insurance contracts held abroad

One form per account [7]. You're declaring the account, not paying tax on it; the income goes on your main return. GOV.UK's "Living in France" guide flags the same duty [2].

The penalties are steep [8]:

Pound conversions use the Bank of England spot rate of 5 November 2026 (£1 = EUR 1.2002). It takes ten minutes online once you've done it the first year, so don't let it slide.

Putting it together

1. Tell your UK ISA provider that you've left the UK and stop paying in [1].
2. List every UK account for your first French return and file a form 3916 for each [7].
3. Report UK interest, dividends and gains on your French return, ISA or not.
4. Consider opening an assurance vie early to start the eight-year clock, especially if inheritance matters.
5. Think about a PEA once you're settled and sure you're staying.
6. Leave UK pensions where they are unless you've had regulated advice. Pension transfers need regulated financial advice, and the FCA and MoneyHelper warn about scams; see UK workplace and private pensions abroad.

Questions about how others have handled their ISAs? Our community group for Brits in France is a good place to compare notes, though for decisions about your own money, a tax adviser who knows both countries is worth the fee.

Sources

1. GOV.UK: Individual Savings Accounts, if you move abroad
2. GOV.UK (FCDO): Living in France, tax (updated 2 October 2026)
3. Service Public: social charges on capital income (verified 30 June 2026)
4. JeChange: why assurance vie was spared the 2026 social charge rise (31 August 2026)
5. Generali: assurance vie tax factsheet (December 2025)
6. Service Public: plan d'épargne en actions, PEA (verified 22 May 2026)
7. Service Public: 2026 declaration of accounts held abroad, form 3916 (verified 15 April 2026)
8. Service Public: must you declare accounts held abroad? (verified 9 July 2026)
9. GOV.UK: France tax treaties

Keep reading

• France taxes for Brits
• Banking in France as a Brit
• ISAs when you move abroad
• Double taxation agreements and reliefs