Tax on unearned income

[Kate]

I've decided buy a house in France next year, with a view to moving in permanently  - a year before my occupational pension and State pension become payable in the UK. So for about a year (maybe a bit less, it depends how soon I can make the final move) I'll be living on my reserves, including income from an inheritance I received three years ago. How do the French taxes compare to UK ones, when one is not earning but using unearned income? And does anyone know how much tax I'd have to pay on the pensions, when they finally kick in? Part of the occupational pension will be in the form of a lump sum - will this attract tax? It won't be liable for tax in the UK, as it's part of the pension settlement - at least, that's my understandng at the moment.

[cooperlola]

I can answer the lump sum bit - yes you will be taxed if you get it after you become a French tax resident ie the day you move here.  This has been discussed elsewhere - I will try to find it for you.

Yup here

http://www.completefrance.com/cs/forums/787656/ShowPost.aspx

tip:: stick "lump sum" in the search box, top right

[Kate]

Thanks, Cooperlola, that's really helpful. I did a search about pensions, too, and found info I'd have missed if you hadn't pointed me in the right direction. In fact, this is the second time I've said thanks to you for your response to my postings.