Its resonably normal these days to use drawdowns, especially as annuity rates have been so poor over the last few years.
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Hi, it seems straightforward, you have either one pension with two elements, or two separate schemes - a monthly payment (DB) and a lump sum (DC).
If two separate schemes the UK will allow as well a ‘tax free’ lump sum from the DB to be taken.
Yes you are eligible - the tax bulletin (posted several times on the forum now) specifically states part of the pension can be taken as a ‘annuity’ and the rest as a lump sum - and not even initiated at the same time, the key part being the lump sum part is taken in one go.
And if it’s two separate schemes then no problem - take the DC as and when you want in one go and it qualifies for the 7.5% rate.
Others have posted cashing in the DB is probably not worth the fees - and do you want to cash it in anyway rather than have the monthly (inflation proofed?) income…
Also I see you’ve agreed it’s not an option!
So, take your DC as a 7.5% taxed single lump sum. As you’ve written “it’s subsequent replacement Defined contribution scheme” I suspect it is two separate schemes in any case - and each scheme / plan is considered separate by France tax authorities even if with one 'provider.
Hope that helps, as ever peoples advice is to request confirmation from them!
However, one question?
How on earth did you get HMRC to apply a NT code to a pension which isn’t even in payment yet?
We’d all love to know how to do that !!!
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Wonderfully phrased 
Classified as NT for rental income, but I assume that being NT classified under the dual tax treaty, this applies to all income? Or do you have to re-apply for a new income such as pension payments?
I will investigate this with the provider.
Enquiring minds need to know.
Especially as ISTR a person or two on here mentioning not long ago, they too thought their existing NT status covered them but apparently HMRC needed a new France Individu form for any(each) new source of income if it originated from a UK source.
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Ok, thank you. Useful to know beforehand rather than trying to reclaim after it has already been taken by HMRC
PS be aware that while you can take a first-time lump sum or complete withdrawal (one time only per fund but you may well be able to pre-organise into a set of funds before you actually withdraw accordingly, if you can transfer out) at the 7.5% rate, which currently becomes 6.75% with the standard 10% part of income ignored… I believe the amount taken still counts into your income for the year here… so could boost you into a higher tax bracket.
If you qualified for an S1, either working in the UK or as someone of an age entitled to receive a UK state pension for example, this would mean you’d not have the social security type charges on the withdrawal on top of the 7.5%
Have a look round SF Forum threads - these things have been discussed quite a lot this year and recently.
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Thanks Karen, as the occupational pension matures 1 year before I qualify for a state pension, I would not have an S1, so will have to pay social charges on any money received. I cashed in a small personal pension several years ago and declared it as a prélèvement forfaiture , paying the 7.5% and 9 odd percent social charges but I don’t remember this one off lump sum affecting my overall tax rate for income that year?
HMRC require a new France Individual Form to be completed/stamped by the Impots and submitted for each new source of UK pension income, in order for them to issue an NT code/refund any PAYE withheld. In other words even if hypothetically you have an NT code for an existing UK pension, they will want a form completed for a UK new pension. Their internal technical manuals are very clear on this requirement, unfortunately.
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Hi, I have recently done a podcast as part of a series that will tell you all you need to know about pensions and being based in France… due to be released early 2024! If not I’m always happy to spend an hour with someone on a zoom and explain your options.
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You could wait until you have the S1 before ‘cashing in’ the DC pension? There was a bit of debate over timing of S1’s somewhere in another thread - it was about the start date on the S1 if I recall correctly - I think the impot asked for it and maybe coz it started part way through the tax year it wasn’t allowed for that year?
No it won’t - the flat rate discharges the income against the ‘scale’ income. However I discovered the flat rate seems to be taken into account for the wealth tax! The lump sum + your other income for the year if > 250K generates a small % change on the excess ( >500K if married / PACSD). Presume that won’t affect you.
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Could you not stretch taking it till you’ve got your S1 then? Depending on the changing whims of the DWP (who issue retirement S1’s - preretirement ones for qualifying workers are issued by HMRC), you can request your S1 up to quite a few months before your state retirement age.
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No , it won’t affect me by a wide margin😀
If I can, I will leave the DC untouched until I am 66