Tax on Pension

[Pauline]

Hi

We are in the process of moving to France, my husband Mike is looking at early retirement, he is 53. Will he have to pay tax in France on his pension?

[Gardian]

Pauline ............

He most certainly will.

Once resident (i.e. on arrival), you enter the French taxation regime and his income (and yours, if any) become taxable.  However, you will not be liable for tax in the UK provided you go through the well-documented process on here - Search on 'Tax' and you'll get bucketloads of info.

Only caveat is if he's a central or local govt employee, in which case his earnings continue to be taxed in the UK.  

[Pauline]

Thanks Gardian, do you know what % of his pension he is taxed?

[Gardian]

With respect, that's like asking the same question for the tax regime in the UK, e.g. if your income is £15k you might pay 20%, and if it was £40k it might be 30%. These aren't the numbers for either here or the UK, but in both cases, it depends on your total gross income & allowances. Higher tax rates kick in, the higher your taxable income.  

Read up on the previous posts from the folk who are intimate with the detail - it's not that complicated once you get the hang of it.  If you're still baffled, come back.

[derf]

If he's retiring with a pension at 53, will he have a service pension police/millitary etc. or a civil service pension? If so these will be taxed in the UK but need to be declared on your French tax return.

 

[Pauline]

Hi Les

Mike has had his army pension converted to NHS so it will all come from Health Authority.

Pauline

[Gardian]

So as Les says, your husband's income will continue to be taxed in the UK - this is not optional.

However, you must complete a French tax return - although it will be a nil demand, it will be necessary when your E106 runs out in order that your Social Security cotisations can be calculated accurately.

[Sunday Driver]

I recall reading on another forum that health service pensions are not classed as government pensions, so it'd be worth checking this out first. I think teacher's pensions also come into the same category.

 

 

[allanb]

I get into trouble whenever I mention the UK/France tax treaty, but the fact remains that that's where the definitions are.  It confirms what Les and others have said (Article 19).

[Sunday Driver]

Don't mention the War! I did it once but I think I got away with it.........[Www]

 

[Bugsy]

[quote user="Sunday Driver"]

I recall reading on another forum that health service pensions are not classed as government pensions, so it'd be worth checking this out first. I think teacher's pensions also come into the same category.

[/quote]

FACT.

NHS Pensions are not classed as government pensions and can be paid direct to your french bank account (in euro's).

 

[Ron Avery]

How they are paid to the pensioner does not determine if they are "state" pensions as the French like to call them, I read somewhere that you can now get these "government" pensions paid in euros in France for a small fee.  However, I have no idea whether NHS pensions have to be taxed in the UK or not but teachers pensions are classed as local authority pensions i.e. Government pensions and are taxed in the UK.

[Bob T]

Military pensions can also be paid into a French bank account in euros, as mine is, but tax is stilll paid in the UK.