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U.K. private pension and how is it taxed


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I have lots of pension questions, I wonder if there are any experts out there who can help.

I’m a French resident but cross border worker. I pay tax in uk and receive an S1 form for healthcare while I continue to work. I have a U.K.  private pension/SIPP.


If I retire early, can I take private healthcare (not a mutuel) in order to opt out of social charges?
I will lose my S1 form when I stop working until I reach age 67.

Any idea how much private healthcare is per month? I know, how long is a piece of string - but a very rough ballpark figure?

If I take all the pension at retirement I pay 7.5% tax on the whole pot (less 10% allowance). Generally it’s then best to transfer in to an assurance vie for tax purposes?

i believe I would then only pay tax on the gain of the assurance vie but at what rate? Ideally I’m looking for income tax rates and social charges separately here. I have looked on the web but there are lots of pre 2017 figures clouding my understanding.


I will of course be seeking professional advice too but I like to be as clued up as I can before consultation so hope you can help.



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Hi, Sorry to see you had no replies; the forum seems less active these day and there were several questions! Not sure I can help a lot as I'm certainly no expert..   I think it may be possible to join the Puma system in France until you reach state pension age but I haven't needed to do this so have no information. I think you may have to pay social charges till you get a state pension, as it's only when you have an S1 that your healthcare is paid for by the UK. Until then you would cost the French health service.

I have just cashed in a modest UK pension pot (but more than £10k so it isn't treated as 'small').  I live in France so pay tax here and completed a form France Individul for HMRC so get my pensions untaxed.  However there seemed to be no way to get the lump sum untaxed so Utmost gave me the 25% tax free that HMRC allows, and taxed the rest at 35%.

I now have to reclaim that money and have a nasty feeling I have to complete another France Individual form and get it stamped by the tax office here.

From what I've read, you can ask to have the lump sum taxed here at 7.5% - which I intend to do.  This means you pay less tax on it than you would in the UK - but obviously you have to be registered with the Impots here in the year you receive it.

Assurance Vie seems to be a good way to invest and is not included in your estate. I think you pay tax on the interest only when money is withdrawn. Take care though - there was a letter in The Connexion recently from someone very unhappy with their AV. They lost a lot in charges and when cancelling it.  Of course it is a long-term investment and you have to choose your provider carefully.  I started an AV 2 years ago and, despite a market crash  due to Covid, it has increased considerably.

I'm sure other forum members can correct any errors.

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On 22/12/2021 at 18:33, canard said:

Really? No one?

There are a couple who might give you a useless  OPINION, but those who might be able to help with facts and links to useful sites are no longer bothering to offer free advice, since they are derided on this Forum as

Old age male Brits living in France who think they know everything....


  • Haha 1
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