Securities accounts and PEA account


Securities accounts

Securities accounts, or "financial instrument accounts", are used to purchase, hold and sell securities, such as equities, bonds, shares in mutual funds, Exchange Traded Funds (ETFs) and warrants.

PEA account

A PEA (literally "Plan d'Epargne Actions" or equity savings plan) is a securities account that does not require payment of taxes on dividends and capital gains,subject to certain conditions.

  • A PEA may include the following types of securities (list is not exhaustive):
    • i/The equities and equivalent securities of French and European companies (European Union members plus Iceland, Norway and Liechtenstein):
        - Equities, whether traded on a regulated market or not, and investment certificates
        - Warrants and rights attached to eligible securities that were included in the plan at 31/12/2013
        - Shares in French SARL limited liability companies
        - Co-operative and mutualist investment certificates
    • ii/ CIS shares and units:
        - Funds in PEA accounts may be used to purchase shares in SICAV funds and units in mutual funds established in a European Union Member State or in a European Economic Area country, and which invest over 75% of their assets in the eligible securities and rights indicated above.
  • PEA can only be opened by individuals who have their tax domicile in France. PEA investors can pay up to €150,000 into their account and only in cash.
  • The PEA holding period begins when the plan is opened when the first payment is made. The plan will be automatically closed if any funds are withdrawn or redeemed before its eighth year has expired. Funds may be withdrawn after eight years without the plan being closed, but no more additional payments can be made in.
  • A PEA cannot be invested in any of the following:
    • tripped securities or rights
    • Shares in SCI real estate investment companies
    • Bonds
    • Securities held in a PEE company savings plan or a PERCO retirement savings plan
    • Equity warrants

The Barclays advantage

Investors in Barclays securities accounts and PEA may access to self-managed", "profiled", "advisory" or "discretionary" management service

Main differences between a securities account and a PEA account

  PEA account Securities accounts
Eligibility Individuals with their tax domicile in France Individuals regardless of their tax domicile
Maximum number One plan per person and two per couple within the same taxable household No maximum number
Tax exempt Yes No -tax reduction on certain securities held for a specified time.*
Maximum investment 150 000 € Unlimited
Eligible securities (partial list) i/ Equities and equivalent securities
ii/ French and European UCITS
All types of securities
Availability of funds Any time Any time
Management service available at Barclays
  • Self-management
  • Advisory
  • Discretionary
  • Self-management
  • Advisory
  • Discretionary


*For shares in companies or in UCITS that are at least 75% invested in equities, there are two types of tax abatement mechanisms on capital gains subject to personal income tax.
 

  • General abatement, which enables all tax payers to benefit from the following reductions on capital gains tax on assets sold after 1 January 2013:
    • 50 % when securities are held from two years to up to eight years
    • 65 % when securities are held for eight years or longer.
  • Additional abatement on SME securities that meet certain conditions sold after January 1st 2013, and, as of 2014, on the sale of equity interests within a family-owned company or to the managing directors of SME who are retiring: :
    • 50 % when securities are held from 1 year to up to 4 years
    • 65 % when securities are held from 4 years to up to 8 years
    • 85 % when securities are held for 8 years or longer.

It should be noted that these allowances also apply to capital losses and depend on how long the securities are held.

After deduction of the tax abatement, capital gains are subject to personal income tax at the standard progressive rate scale.

For French tax residents capital gains are also subject to social security taxes, which are applied to gross capital gains before abatement.

Barclays PEA and securities accounts

Barclays account Barclays Bourse On Line Barclays Bourse Conseil Barclays Premier Choice MF Mandat / Le Mandat Mixte
Minimum investment 0 € 75 000 € 10 000 € 50 000 €
/
250 000 €
Management service Self
You alone select, buy and sell investment vehicles
Advisory
A dedicated Advisor Manager who is an expert in financial markets will assist you with your investment decisions. You remain in charge of all buy and sell
Advisory
Your Advisor helps you with your investment decisions. You remain in charge of all buy and sell
Discretionary
You delegate the management of your portfolio to a Manager who will follow an investment strategy according to your investment goals and profile
Supports de placement Toutes valeurs mobilières Actions 
Obligations
ETF
OPC Actions
OPC 
Investment vehicles All securities
PEA
Equities bonds ETF Bonds ETF
PEA
Mutual Funds
PEA
Equities Mutual Funds
PEA

A withdrawal from a PEA account, depending on when it is made, can have different tax consequences depends on when the withdrawal is made:

Withdrawal from the PEA account Effect on the account Tax consequence
Before 2 years Closing of the account , Securities and cash are transferred to a regular account Capital gains are taxed at 22.5% + social security taxes(2)
From 2 to 5 years Closing of the account ta-original-title="" title=""> Capital gains are taxed at 19% + social security taxes(2)
From 5 to 8 years Closing of the account Only social security taxes are due(2)
After 8 years The account may remain open but no more additional cash deposit to proceed to further investments are allowed. Only social security taxes are due.(2)

(2) The rate used for social security taxes calculation is the applicable rate upon account closing, if funds are withdrawn before five years, and only if a net gain was realised for after five years withdrawal.
The social security tax rate is currently 15.5%.