UK SIPP Suitable for French Residents

[Dave_Lawson]

@Badger

This is where things fall apart - my funds total approx. £35,000. I could reluctantly move other savings to make up the minimum. Could I then withdraw the extra & put it back where it came from i.e. does the £50K minimum only apply to the initial investment?

It wouldn’t make sense to add to it as you wouldn’t get tax relief on the money that goes in. £50k is a company minimum the solution minimum is 20k. If you are really stuck I can see if we can waive the minimum.

[Badger]

@Dave_Lawson

It wouldn’t make sense to add to it as you wouldn’t get tax relief on the money that goes in.

Ah, good point…

@Dave_Lawson

If you are really stuck I can see if we can waive the minimum.

My fairly extensive research tells me that what you are offering might be my only sensible option, so accepting the lower investment would be very kind. When you have the time please privately message me to instigate the next step.

[SBcamsci]

Excellent thread @Dave_Lawson and @Badger. Thanks for drilling down!

Quick question -
which is better

UK private pension → Cash → Assurance vie (6.75% tax)
or
UK private pension → French SIPP → Assurance vie (“There may be the option to withdraw the pension at a low tax rate in France and reinvest into an Assurance Vie or other tax wrapper.”)

Personal (first) thoughts - ORIGO transfers are super simple - but I don’t know where we’d sit on the 1% - 5% charges (ie the tiers) and even best case scenario 6.75% + 1% is worst that 6.75%.

So the question is why would we pay extra to go via a French SIPP when we don’t need to.
I’m guessing that the paperwork for the former option will be more onerous than for the latter though … … since in the latter - the money’s in a ‘French’ environment.

[Dave_Lawson]

@SBcamsci

UK private pension → Cash → Assurance vie (6.75% tax)
or
UK private pension → French SIPP → Assurance vie (“There may be the option to withdraw the pension at a low tax rate in France and reinvest into an Assurance Vie or other tax wrapper.”)

It’s still a UK SIPP not a French one so you wouldn’t transfer to it if the plan was to withdraw the entire pension. If you plan to access as income it’s a good option.

[SBcamsci]

Hey @Dave_Lawson just a bit confused about the 1-5% charge to Origo transfer between 2 what’s in effect UK DC pensions … … isn’t that free?

(It’s my specialist subject here! Transferred them by Origo, Transferred them by filling our forms! Thinking of transferring them by horse&cart soon inspired by UK’s remake of Dallas entitled ‘Steptoe and Son’ Now in colour!!

[Dave_Lawson]

That my charge if you want me to move your pensions to the SIPP. The international SIPP provider requires terms of business and advice where the holder is resident, UK equivalent qualifications and the right insurance in the jurisdiction to cover the advice.

You would only use this pension if you plan to consolidate pensions and draw down from them over time.

[SBcamsci]

Ahhh gotcha’ thanks for clarification.