Who taxes UK state pension?
Last year our tax office said that we should have paid French tax on our UK state pension then claimed it back from the UK government. As we understand it, the UK state pension is not taxable in France. We would be grateful to receive your comments and any official references to laws which prove our UK pension is not taxable by France. T.H.
It is the other way around, in fact. UK state pension income is taxable by France and not the UK as long as you are resident in France (unlike ‘government’ pension income for retired civil servants, for example, where the opposite applies). These rules are set out in the Double Taxation Convention signed between the UK and France. If you have been paying UK tax it may be that you have not notified your change of tax residence to France to the UK authorities.
Reader's query answered by Hugh MacDonald
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