Social charges on UK government pensions challenged successfully

UK retirees in France won a victory in 2025 after successful challenges confirmed that French social charges should not be applied to UK government pensions.

This followed surprise payment demands from several local tax offices that left many retirees facing bills of thousands of euros a year – and in some cases back payments.

All local offices will now be advised not to demand these payments, The Connexion was been told.

French tax authority confirms rules

Central tax authority the Direction générale des finances publiques (DGFiP) confirmed to us that the charges – primarily CSG and CRDS – form an “indivisible” package with income tax when applied to UK government service pensions. 

As these are taxable only in the UK under the UK–France Double Taxation Convention (DTC), they are also free from French social charges, a spokesman told us.

This followed a successful ‘MAP’ procedure taken by a campaigner against the incorrect charges, a process allowed for under the UK-France DTC, involving talks between the UK and French central tax authorities. Another member of a campaign group he launched also undertook the same process and received an identical result.

The campaigner, a police pensioner who was below UK state pension age, received a ruling from the DGFiP that stated: “The competent French and British authorities have come to an amicable agreement, ensuring the elimination of double taxation, under which the French side accepted to lift the totality of the extra taxation that was levied on you.”

The authority added that it had asked his local tax office in Tarn-et-Garonne to follow up on the agreement that was reached.

What this meant for other UK public sector pensioners

After we asked if this would have repercussions for similar cases, the DGFiP confirmed its reasoning to us, saying:

“It is not possible to levy the social charges on these revenues received by British nationals fiscally resident in France.

"The position of the competent French authority [DGFiP] being that the right to tax these incomes belongs to the UK, the service will apply the same solution to all similar cases that it becomes aware of.

“The local tax authorities will be informed of how to deal with similar requests for MAPs lodged by taxpayers.”

The spokesman said this applies to UK public sector pensions – such as from work for the police, army or state teaching – and any similar remuneration linked to this work. 

It does not apply to UK state pensions nor to recipients in France of UK government pensions who are French nationals only.

DGFiP previously confirmed principle to The Connexion

The DGFiP previously confirmed to The Connexion, earlier in 2025, that it stood by the traditional interpretation of the UK-France DTC with regard to what are called government pensions in the English version of the DTC, or pensions de la fonction publique in French, so it was unclear why there were increased reports of issues with social charges on these pensions in 2024-2025.

Incorrect levying of social charges has been reported to us from time to time in previous years, but in most cases situations have been resolved locally.

In some cases it can also be linked to incorrect completion of the tax returns.

The authority told us:

Pursuant to article 19.2 of the Franco-British Convention of June 19, 2008, government pensions are taxable exclusively by the paying state. 

As an exception, these pensions are taxable exclusively by the state of residence of the beneficiary if the latter is a national of that state without also being a national of the paying state. [Editor's note: this would be the case, eg. for a person who is French, and only French, and who retired to France after working for the UK public sector.]

In accordance with article 24.3 a (i) of the same convention, government pensions received by residents of France give rise to a tax credit equal to the amount of French tax corresponding to this income, provided that the resident is subject to UK tax on these pensions.

The CSG and CRDS contributions are treated as income tax within the meaning of the convention, in accordance with the established case law of the Conseil constitutionnel and the Conseil d’Etat (see Constitutional Council decision no. 90-285 DC of 28/12/1990 and §110 of BOI-INT-DG-20-20-100).

These contributions are therefore expressly referred to in article 2.1 b (v) and (vi) of the Franco-British tax treaty. 

Consequently, subject to compliance with the above conditions, the CSG and CRDS paid in France on British retirement pensions may be taken into account for the calculation of the tax credit applicable to French tax, pursuant to Article 24 of the Franco-British agreement.

Original text

En application du 2 de l'article 19 de la convention franco-britannique du 19 juin 2008, les pensions publiques sont exclusivement imposables par l'état débiteur. 

Par exception, ces pensions sont imposables exclusivement par l’état de résidence de leur bénéficiaire si celui-ci possède la nationalité de cet état sans posséder en même temps la nationalité de l'état débiteur. 

Conformément au (i) du a du 3 de l'article 24 de la même convention, les pensions publiques perçues par des résidents de France ouvrent droit à un crédit d'impôt égal au montant de l'impôt français correspondant à ces revenus à condition que ce résident soit soumis à l'impôt au Royaume-Uni sur ces pensions. 

Les contributions que sont la CSG et la CRDS sont assimilées à des impôts sur le revenu au sens conventionnel, en application d'une jurisprudence constante du Conseil Constitutionnel et du Conseil d’État (cf. décision du Conseil Constitutionnel n° 90-285 DC du 28/12/1990 et §110 du BOI-INT-DG-20-20-100). 

C'est ainsi que ces contributions sont expressément visées aux (v) et (vi) du b du 1 de l’article 2 de la convention fiscale franco-britannique. 

Par conséquent, sous réserve du respect des conditions précitées, la CSG et la CRDS acquittées en France sur les pensions de retraite de source britannique peuvent être prises en compte pour le calcul du crédit d'impôt imputable sur l'impôt français, en application de l'article 24 de la convention franco-britannique.

The campaigner reported first being affected in 2024 when he contested his bill with his tax office. However, a local official told him the charges were justified as he did not have an S1 form, issued to UK or EU state pensioners whose healthcare costs in France are covered by the country that pays their pensions.

He argued that this was irrelevant as the pension should not attract the charges due to the DTC and not due to a different rule whereby overseas pension incomes in general are free from charges if the holder is not a burden on the French health service.

Under the US-France treaty, all US pensions are treated similarly, but we did not hear of American readers facing this issue.

He took the matter to a local tax mediator (conciliatrice fiscale), who supported the view of the tax office, as well as giving an unusual interpretation of his income being a “pre-retirement benefit.” He then launched the MAP.

After we covered the issue in summer 2025, the UK’s HMRC contacted us about our article. The campaigner also wrote to the British Embassy Paris, which told him it had been in touch with HMRC about his case and others highlighted in our article. 

How to undertake a MAP procedure

It is hoped that the challenges in 2025 will lead to fewer such cases moving forward, however, should you be affected, experiences has shown a ‘MAP’, which is free and does not require a lawyer, can work. 

An HMRC spokesman said: "Individuals should try to resolve this directly with the French authorities in the first instance. 

If this proves unsuccessful, they can request assistance via MAP from either HMRC or the French competent authority."

That is to say, those affected should undertake the usual complaints procedure via their local tax office; then could look at a ‘mutual agreement procedure’ (MAP), as defined in the DTC article 26 (procédure amiable). 

A ‘MAP’, when there is a dispute over income from the UK, involves applying to HMRC or the French Finance Ministry. 

It should liaise with its counterpart to check if correct rules have been followed.

In the case of US income, article 26 of the US-France double taxation treaty contains similar rules. 

The British Embassy confirmed the advice as told to us by HMRC, directing the original campaigner to information at impots.gouv.fr and gov.uk, and information on English-speaking tax lawyers.

As a reminder, ordinary UK state or UK private pensions of residents of France are assessable in France and social charges may be levied on them unless the person has an S1 form, which means the UK pays for their French healthcare. 

This is unrelated to the ‘government pension’ DTC rules. 

Social charges may also be levied on investment income, but S1 holders are entitled to a reduced rate of 7.5%.