Tax free lump sum on pension - taxable?

[nectarine]

The earliest I can take my pension is in February, which I plan to do, and the 25% lump sum. Is this taxable in France and, if so, how much?

Many thanks all.

[parsnips]

[quote user="nectarine"]The earliest I can take my pension is in February, which I plan to do, and the 25% lump sum. Is this taxable in France and, if so, how much?

Many thanks all.[/quote]

 Hi,

   You don't say what type of pension you have , so I am assuming it is an occupational pension which is taxable in France and not a government pension (teacher, civil servant etc. ) which is taxable only in the UK.

   The pension and lump sum are taxable here (after a fixed deduction of 10%).  The lump sum can be taxed in two ways depending on which you think most to your advantage--either in with your normal pension ,declared at form 2042 1AS (or 1BS as appropriate) when it will be taxed at your marginal rate, or , if you normally pay at over 7.5% , or you expect a very big lump sum, you can declare the lump sum only, at1AT (or1BT) when it will be taxed at a fixed rate of 7.5%.

   In either case you can apply to reduce any excessive tax arising, by filling out 0XX at bottom of page 3 of 2042 which allows a special spreading of the liability to avoid going into higher tax bands. If you do this don't enter it as above in 1AS /1BS or 1AT/1BT.

   Impossible to say how much , but you will pay tax at at least your normal rate, plus social contributions which could vary from 0% to 6.6% depending on your circumstances. For social contributions you declare in secVIII on form 2047.

   

   If you are not sure , ask at the tax office.  You have plenty of time to sort it out as you don't have to declare it until spring 2014.  

[nectarine]

Thanks parsnips, very helpful answer.