hello,
Has anyone had experience of cashing in the whole of their UK SIPP Pension and being taxed in France at the prelevement forfaitaire rate of 7.5% on the WHOLE amount (minus the 10% abatement)?
The reason I’m asking is because I have other income in France so wish to avoid any part of my cashed-in SIPP being taxed at my marginal rate of tax.
I’ve heard conflicting advice - some say only 25% (the portion which in the UK is tax free) of the SIPP would be at the 7.5 rate and the remainder would be at my marginal rate of tax.
Has anyone cashed in the whole amount?
If so, how did you go about this with the French tax office? Did you check it with your local tax office first or just put it on your French tax return?
Thanks in advance .
@Claire1 can you help please?
1 Like
No I didn’t check it with the tax office I read about it online. I declared my income as normal and put the lump sum pension in the relevant box where you pat 7.5 percent. It was several years ago it appeared the best way for me to declare it .
1 Like
Thanks @cat
Our clients generally complete their tax returns in the same way as @loupblanc without any issue but I can only encourage anyone in doubt, to seek advice from a governmental body, here the local tax office.
1 Like
thank you @Claire1 and @loupblanc, that’s reassuring. I just wanted to make sure there are no pitfalls.
It’s good to know that you just need to fill in the right box on the tax return.
Does it make any difference if you have taken the 25% tax-free lump sum out of the SIPP before becoming a French resident? I have heard conflicting account either that you must liquidate the SIPP in its entirety to take advantage of the 7.5% rate or that whatever happens with the SIPP before you become a French tax payer is irrelevant. Obviously the ideal would be to take the 25% tax-free while still a UK tax payer then liquidate the rest of the SIPP at 7.5% after becoming a French tax payer if this is permitted.