Tax treatment of UK pension lump sum

Given the recent changes by HMRC to French QROPS can anyone advise where a pension can be transferred in order to take a lump sum payment tax free in France. If you take a QROPS in say Malta and bring the tax free lump sum into France, will it be taxed and social charges added?

Perhaps @Brian_Furzer can answer this one?

sorry folks… I was at the computer without my glasses… (dangerous) … :open_mouth:

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You still found the computer without your glasses. That’s quite impressive :smiley:

Ha ha… I was wearing sunglasses (blacked out, so virtually blind)… when I took them off, I realised I had doubled-up on James’ post…:grin:

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Hi again - haven’t had any replies on this one - thought it was quite a pertinent question and would also help others in similar situation - does anyone have any thoughts please?

Hi Lynne did you contact @Brian_Furzer ???

Hi Stella - no I didn’t - I thought he would pick up on it, didn’t realise that James mean’t I should email him - duh!

Hi @Lynnee you can contact Brian here :slight_smile:

Great link James

and to quote or misquote Dumbledore “Help will always be given to those who ask for it.”:smile:

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Thanks James, I have emailed as you suggested - silly me didn’t realise…

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If you move it to a QROPS in Malta you can take a 30% lump sum tax free but you will always pay the social charges on that in France (7.5%), just as if you’d brought the 25% lump sum over from the UK. Apparently you can transfer the whole pension fund to France and pay only 7% tax on it but I believe you’d still pay social charges as well. That’s a one time thing to move the money into a similar investment in France.

I had to pay tax on my lump sum in 2011, our tax advisor said the rules had changed recently back then and there was no way of not paying. It was a bit less than 10% I seem to remember. Up to then you had been able to transfer it without paying French tax.

I pay all my tax in France. Last year i paid tax on a lump sum deferred uk pension on French tax return and i chose to pay the 7 percent rate.

I suggest anyone with queries should contact our @Brian_Furzer for all up-to-date info on Pensions and Tax…