UK Pension lump sum in France, 7.5% PFU & Rescrit Fiscal

[George1]

I hope Angela (to whom you replied) will forgive me if I briefly answer your questions..

@Tracy_Parker

I would also declare the gross amount in box 1AT

Correct

@Tracy_Parker

Do you have to have the funds transferred direct to a French bank account to benefit from the 7.5% tax

No, you can keep the funds wherever you like. Just in case you’re not aware, please bear in mind that unless you have an S1 form or private medical coverage, you will also be liable for social charges (prélèvements sociaux - crude estimate of c9%) on any pension lump sum.

@Tracy_Parker

do I declare on next year’s tax return for income received during 2026.

Exactly that.

[Tracy_Parker]

Thank you for the information. I am aware of the situation regarding the S1 and payment of the social charges if not yet in possession of it but really appreciate you mentioning it and hoping the information will help others.

I am pleased to hear you can have lump sum transferred into a uk account and still benefit from the 7.5% rate. What was causing me concern was this wording from a taxation company

“Once the funds arrive in France, the 7.5% tax ruling may apply if the following criteria are met”

I meet the criteria but does this mean you have to transfer money over as the lump sum from a uk account almost instantly, hence my question about payment going direct into a french bank account.

Thanks for any information concerning this and what others have successfully done.

[George1]

@Tracy_Parker

does this mean you have to transfer money over as the lump sum from a uk account almost instantly,

I mentioned in the post above that you can keep the lump sum proceeds wherever you like. As a French tax resident you are obligated to report your worldwide income, irrespective of its source location, including pension lump sums.The answer to your question is therefore ‘no’,

[Tracy_Parker]

Thanks for further clarification. Appreciate it.