I have a pension redress offer from the Prudential for ‘bad advice’ given to me in the 80’s. I was advised not to join a company scheme (BT) and eventually managed to get it reviewed and an offer of redress was made. Now the Prudential are making the offer of the payment (it cannot be included in my pension pot). In the UK it would be tax exempt under specific legislation relating to the pensions reviews / compensation. I am considering taking the payment and investing it for my future retirement but am unsure about the tax liability in France of this payment. Can anyone offer advice / similar experience of such a payment and the tax situation ?
Guessing the answer is no, from the lack of replies , but I am bumping this in the hope that someone will see it and be able to help you.
If not, I suggest you seek professional advice.
Your best bet might well be to talk this through with your local Tax Officers… they know all the ins and outs and will tell you in which box to put in on your French Worldwide Declaration…
Thank you both for responding. I have now sought advice from my financial advisors - they consider it not to be taxable, a french tax advisor however does I will be declaring it in my next return.
Peter - worldwide declaration means just that, so glad you will be declaring it.
However, it will need to go in a specific “box” and getting it wrong might not be advantageous. I would suggest you consult with your local Tax Office when the time comes. They always hold sessions where folk can go in and discuss their Declaration to ensure stuff is registered correctly.
This year, with the new system, many folk have made errors on their Declarations. According to my sources, there are loads of corrections needing to be made and not always in the Tax Man’s favour.
Thank you Stella, I will be using a tax accountant for the next return as its out first full one and we want to ensure we get all the correct boxes completed or ticked I want to be sure we pay what we have to but not more than we have to !
Exactly so, Peter.
does this mean you have already made a first (albeit partial) declaration in France ?
Yes, we did a return for the month of December 2018. Nothing complicated, just a bit of interest from our savings.
That would have been a paper one which you did at the Tax Offices (face to face) - yes ??
Yes, we toddled off to the tax office and collected the forms. We then returned two weeks later to the office and submitted our folder of forms (along with a big queue of people all doing the same).