In order to be eligible for the Equity Savings Plan (PEA) and the PEA for small and medium-sized enterprises (PEA-SMEs), the investment securities must be issued by companies based in a Member State of the European Union (EU) or in another State taking part to the agreement regarding the European Economic Area (EEA) having entered into a tax treaty with France that includes an administrative assistance clause or agreement to fight against tax fraud or evasion (4° of Article L I. 221-31 of the Monetary and Financial Code and 5 of Article L.221-32-2 of the same code).
This condition, which is at the head office of the company issuing securities, is constantly appreciated.
As a result, investment securities issued by UK companies are no longer eligible for PEA and PEA-SMEs.
The holding of such investment securities in the PEA or the PEA-SME therefore constitutes a breach of the operating rules of the saving plan, resulting in its closure in principle (Article 1765 of the General Tax Code - CGI).
However, Order No. 2020-1595 of December 16, 2020 and its implementing decree of December 22, 2020 organize a 9-month adjustment period as from January 1, 2021 during which these invesment securities remained eligible for the PEA and the PEA-SME in order to allow time for their regularization (transfer or withdrawal of these investment securities from the plan).
If I am resident in the United Kingdom, the tax conditions of my PEA in the event of withdrawal, redemption or closing remain unchanged. Thus, dividends received on the plan are not subject to the withholding tax provided for in Article 119 bis of CGI (GTC) at a rate of 12.8% except in the special case of dividends paid by unlisted French companies.