Anyone with a SIPP?

[Crevette]

I have a sum of money in a pension fund (UK) which I may transfer to a SIPP (I understand this is possible even though living in France).

Anyone out there with a SIPP? How does this work if you are living in France (e.g. taxes)?

All comments welcomed.

-Rob-

[Benjamin]

There is no distinction on where you are living although some UK insurance companies require that you pass your instructions through a UK Financial Adviser to set up/transfer into a SIPP (Self Invested Personal Pension).

I don't understand the question about taxes. Like any other pension fund it accrues free of any tax liability (except for that imposed by Mr Brown when he first becam Chancellor - sorry my rant for the day) until you start taking an income in the form of a purchsased annuity or as income drawdown without purchasing the annuity.

This is a specialist area and you need professional advice from a UK based Financial Advisor.

Look on Wikipedia for a decent write up.

[Crevette]

Thanks Benjamin,

The "tax" question was because I pay may taxes in France.

I know that ISA's for instance, which are tax free in the UK, are taxable if lviing in France.

-Rob-

[Benjamin]

They are both financial products but are essentially different animals in the UK's treatment of how they are taxed.

The money you put into ISA's (and formerly Tessa's and PEP's) grows free of any tax liability on their increase in value although as you say the French just treat the profit as normal unearned income.

With UK pension contributions the money you put in attracts  tax relief at your highest rate (put £1000 in and you get a tax credit of £400 if you're a 40% tax payer thus making a net contribution of £600). If you're not a UK tax payer you obviously can't have the rebate! Once you have invested in this tax efficient way you are not allowed to take the money out until you reach retirement age (which I'm not sure these days but it could be as early as 55 years) and then you buy an annuity which pays out an income (taxable in the UK or France dependent where you are tax resident).

You can only have the tax relief once on your contributions; so in the case of your original question and for the sake of illustration assuming you were in the UK, any transfers from one pension fund to another is not eligible for tax relief.

Complicted area and as I said earlier don't listen to blokes down the pub or on internet forums but seek professional advice.

[united]

Crevette,

I agree top class advice is the key here.

There are a couple of additional points I will add. Firstly you may not have to buy an annuity there are other methods of obtaining income from pension arrangements. Secondly I understand the 'tax free' cash element that is attractive to UK taxpayers is not a concept recognised by the French taxation system ie you will pay tax on it.

Your adviser should know a heck of a lot more than I do!