Hi everyone. I was wondering if anyone could help me have a bit of insight on my pension. I have UK Government Pension which from what I understand is taxed in the UK. After declaring this on our impot they have said we owe €900 and it has pushed us in to a higher bracket (as my partner still works).
From looking at the impot under Details de revenue they have put my pension as an income under Pensions, retraites, rentes and again under Salaires, pensions, rentes nets.
To me it looks like they have classed my already taxed government pension as an income and therefore taxable again, affecting our overall income and tax bracket (and having a knock on affect for things such as garderie and canteen for the kids).
It can also be where it ends up on 2042. From memory, it is 1AL or 1 BL.
It has been known for the reporter function to put it in the wrong place.
When this happened to us, I rang them and they sorted it.
These are my notes. Mine is a Local Government pension.
To get the tax credit, you enter the gross amount of the pension on form 2047 section 6 REVENUS IMPOSABLES DE SOURCE ETRANGER OUVRANT DROIT A UN CREDIT D’IMPOT EGAL AU MONTANT DE L’IMPOT FRANCAIS CORRESPONDANT A CES REVENUS
Pays RU
Nature de revenus - pension fonctionnaire
Revenu avant deduction -gross pension
then reporter the total across to 2042 tick box 8TK.
Hope this helps, it works for us.
Indeed. Errors do occur. Our recent Avis d’Imposition is for over 14 times the amount of last year’s. Just wish our income had increased by the same amount. Needless to say, a discussion is on going.
Whilst it probably isn’t the case here, there have been worrying reports from others posting on SF (including JohnH) that there is apparently a significant reinterpretation underway by the Impôts. They are believed to be seeking to subject UK (and possibly other countries) government pensions for ‘early retirees’ (pre-state pension age?) to CSG and CRDS. This is despite clear wording in the UK/France tax treaty that such pensions are granted a French tax credit that specifically includes CSG/CRDS. We await further information and confirmation about this concerning trend.
That was my first thought, too. Presumably @The_K_Man has checked his avis d’impôt to see whether it is indeed simply a case of the UK government pension pushing him into a higher band. And not another instance of the Fisc wrongly levying CSG/CRDS on the government pension?
Hi. Thanks for the all the reponses. We are currently awaiting an answer from the Impots with regards to my government pension affecting our household tax band. As we understand it should not affect it as I am not a citizen or national of France and only a resident on a 2 year Visa (Titre de Sejour).
As everything else in France we could be waiting a while for a response…
As everyone else says, your public sector pension is taxed in the UK and you don’t pay tax again in France because of the double tax agreement. I am in this position. My husband has a state UK pension taxed in France. My pension is still added into the equation to determine our overall income, but I can see on the tax form that my pension is in the tax credit box. I always add a mention express on my tax form which says “ I am in receipt of public sector pension that is taxed in the UK and exempt from social charges”. It’s worked so far.
Why should this not affect it? Tax is the same for citizens and residents. If your foreign income takes your total income into a higher band then you will pay the higher rate on any income over the threshold. Same applies to overseas rental income which is taxed in country of origin.
As per my post of 15th August, did you check which box your government pension ended up in on form 2042?
I have been entering my government pension since 2010 and it only went wrong once because their error put it in the wrong box on transfer from 2047 (formerly known as the pink form) to 2042.
Update. Following representations made to the Hotel des Impots, I have been sent a ‘rectifying’ Avis d’Imposition reducing our tax bill by over 2,600 €uro. Of course there was no apology for having made an error, and no explanation of how the error happened, but then knowing how they work I was not expecting one.
Just goes to show that one can challenge their figures and obtain a favourable result.