Seven points to know about UK pensions in France

So much has happened with pensions over recent years, it is easy to get confused. With more options than ever for how you can access your funds, it can be difficult to establish the best approach.

Here we outline seven pension issues that could affect expatriates in France, and explore what you can do to take advantage of today’s opportunities.

You could pay as little as 7.5% tax on UK pension pots

British nationals with French residency can potentially withdraw their entire UK pension as a lump sum and pay just 7.5% in taxes with an uncapped 10% allowance.

This special rate is only available if you have not accessed your pension already and you take the whole amount at once; there must be no further possibility of taking out more.

Also, pension contributions must have been deductible from your or your employer’s taxable income, so most company pensions will qualify (non-contributory schemes are unlikely to be eligible).

Otherwise, UK pensions are liable for French income tax rates of up to 45%, plus social charges of 9.1%. Only UK residents or French residents with UK government pensions attract UK taxes.

Taking private health insurance could reduce taxes

Many people do not realise that having access ...

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