Service Pension lump sum

Trying to find out what box on tax form 2042 I put my government service pension lump sum that is tax free in England but I must declare in France? Any help greatly received!!

Hi, welcome.

Box 1AL and also box 8TK. Same place you declare the monthly pension received (before any UK tax is taken off).

The ‘issue’ is that when declaring a large amount it is then added to your overall worldwide income, pushing any France taxable pensions declared in box 1AM such as UK state pension into a potentially higher band - e.g. from 11% to 30%.

There may be ways around this but I don’t know and I’d like to!

As a single lump sum it might be able to be declared as a pension capital payment which is taxable in France at 7.5% (but an unlimited 10% reduction means the actual rate is 6.75%). You could put your numbers into the simulator to see whether that results in less overall tax or more. If it works for you then discuss with the tax authorities.

If you only have Uk state pension taxable in France probably just declaring in boxes 1AL and 8TK will work out best.

It’s only a small lump sum so shouldn’t push me into higher bracket I just needed to know where to show it in the right place . Thanks for your help.