French tax on UK pension fund

[Blodwyn]

A long time ago I paid a small amount into an Equitable Life pension. The amount wasn't enough to provide more than a tiny regular sum so I left it in. EL was taken over by Utmost. I decided to cash it in and believe 25% would be free of UK tax.

This year I (perhaps stupidly) completed the form so my pensions will be taxed in France. I gather the 25% tax free won't apply here. Does anyone have any idea how much I will be taxed in France on the pension fund?

I have been doing tax returns in France for years but when my husband was alive his teacher's pension was taxed in the UK and so was the widow's pension.

[suein56]

If you have cashed in the totality of your private pension with Utmost then there is a special box on the tax form to declare this .. you will pay 7.5% of the total as a one off amount.

[pomme]

You will have to pay UK tax on the 75%. Utmost will deduct it automatically so you won't receive the full sum from Utmost. But you will eventually be able to claim the tax back (or the Inland Revenue will eventually refund it automatically) if you have told the Inland Revenue you are resident in France for tax purposes.

I think you will find this article explains your various options for declaring in France, depending on the size of the fund https://www.french-property.com/news/tax_france/lump_sum_pension_payments/

[Blodwyn]

Thanks for the helpful replies. I just have to decide whether to take the money now or leave it till I really need it. It might not increase annually but I hope it would not go down.

Apparently if I leave the money in, my children will get it but if I die after age 75, they will pay tax on it. One of them is hoping to buy his first house; his share would at least pay the fees involved!

[Blodwyn]

Thanks for the helpful replies. I just have to decide whether to take the money now or leave it till I really need it. It might not increase annually but I hope it would not go down.

Apparently if I leave the money in, my children will get it but if I die after age 75, they will pay tax on it. One of them is hoping to buy his first house; his share would at least pay the fees involved!