State Pension

Hello All,

not being very good at monetory matters..I currently have my state pension paid directly to my Bank here in France because the tax on it here is less that I would pay on it in the UK..does any one know if this is still the case.

2. Would I have less to fill in on the French impots field if I left my Pension in my bank in the UK.

Any advice would be welcome.

Thank you. Richard

Richard - This area of UK or French taxation can be complicated or can be simple, but it depends primarily on where you live most of the time. If you (& your wife, if any) spend most (or all) of your time in France (essentially more than 183 days per year), your UK state pension is 100% taxable in France, whichever bank it's paid into.

If you spend most of the year in France, and are therefore tax-resident in France, leaving your pension in the UK and not declaring it in France would be tax evasion and a criminal offence.

Thanks David.

HMRC Paul. I was assuming that Richard has other income originating in the UK which is subject to UK tax. My situation is that I am obliged to pay UK tax on my public service pension. What Pauline says is correct no other income in UK then no HMRC but all income to be declared in France in any case.

Thanks Pauline.

But if you live in France and have no income that's taxable in the UK then you would have nothing to do with HMRC.

Sorry David. I'm being a bit thick today. Who lowers the personal allowance?

It's a different system entirely, there isn't a simple answer just like that. In France taxation is per household income and allowances depend on the composition of your household. Depending on your income and your personal circumstances, in France you may pay CSG on top of income tax. I believe that for an individual the tax threshold is lower in France than the UK, ie you start paying tax sooner, but that's just one random element in a complex equation.

But at the end of the day you don't get the choice, you have to pay your taxes where the tax treaties say the taxes have to be paid.

UK state pensions are taxed in France. They are not taxed directly in UK but taxed by the back door by adjusting your personal allowance.

Hi Pauline... can you say if the tax ceiling is higher here in France as opposed to the UK? i.e.. is one allowed to earn more here before one starts paying tax?

How you access your pension makes no difference at all to how you're taxed on it.

If you live in France, then some pensions are taxed in France and some are taxed in the UK. This is established by treaties between the two countries. If the pension in question is a pension that's taxable in France (which UK age pensions are) then it's always taxable in France, whether it's paid into a French bank or a UK bank, and it's always taxed at the euro equivalent of its amount in £s.

So it makes no difference at all in terms of tax.

I have my state pension paid directly into my bank here in France, my company pension administartors will not do the same so is paid into my UK bank then i transfere it every two months by TransferWise .My two pensions were taxed at £97 per month i was told that i could transfer to the French tax system by an accountant so contacted the HMRC they confirmed it and sent the necessary paperwork, end result i am no longer taxed by the UK nor am i taxed by France as the system here allows for me to receive a much higher income before tax a saving of £97 per month is better in my pocket than the taxmans

This is worth knowing about John, thanks. I am one of the women who has had their state pension goalposts moved (twice), so I am not going to receive mine for a couple more years.....

An earlier post referred to the household income being the relevant thing as far as French tax system is concerned...I am one my own (apart from my 2 cats)......Can I assume this is your situation too ?

Thank you.

I know that by having it taxed in france I get a better tax rate than if I left it in the UK. So all I pay is the tax on my crown state pension which , as we know can only be taxed in the UK. Pity because I would pay less tax on it in France.

When we first bought our place my wife was due to retire age 60 now its 66 so we have to manage on my pension alone for the next 6 years. The accountant who gave us the advice was totally shocked when we told him how the UK had juggled the retirement age for women and suggested if they upped it to 99 then they would save themselves even more money.

Not my experience. I have been living off savings, but drew down £12,000 from my personal pension a few months ago, to pay for double glazing, and was taxed at sourcew (PAYE) at 33%! (On the erroneous assumption that I would be doing that every month.)

Naturally, I complained (and wrote to my MP), and did get repaid all but £250.

I am assuming that my state pension will not be taxed, because it amounts to less than the personal allowance.


Woke up this morning...(dah,dah,dah, dah!)...with this on my mind...

Why would the UK give up getting the tax on a UK state pension....especially as it has been frozen for so many ex-pats......seems a bit too easy ?

It was easy Jane they sent the paperwork after speaking to a guy in the tax office it had to be signed by our tax office here supposedly sent to Paris then they should have sent it to the HMRC but it got lost, after contacting the UK office they sent the paperwork again to me to get it stamped by the tax office here then send it directly back to them. Basically i can choose where to pay my tax and as the system here favours me then here is where i pay it. My company pension monthly slips state my tax code is NT. The only flaw in this is that tax on a Government pension has to be paid in the UK from what i have been told

John, Re: The only flaw in this is that tax on a Government pension has to be paid in the UK from what i have been told "

I've seen the same on SFN before. What I don't understand is that pension is income, regardless of who is paying it, therefore it should be taxed where the pensioner is resident.

It's possible that the tax treaty explicitly states that public service pensions will be taxed in the country from which they are paid but has anybody checked?

My father is a retired civil servant (resident in UK) and his pension is taxed at source, based on his annual notice of coding. This code includes tax on the state pension which is not PAYE. In other words, his govt pension has tax deducted from it to cover the tax on the State Pension. If the tax code is NT then surely no tax should be deducted.

I have no idea why but it appears so the tax code of NT was given to me after i left the UK system , also any rental income from a house in the UK has to be taxed in the UK.My age related pension and company pension exceeded my tax free allowance in the UK and hence the £97 per month tax the advice of a French accountant has saved me that money as its only my income we have at the moment its a totaly different way of assesing your tax here