As retired teachers, how would we be taxed in France?

I am French, my husband is English. We are retired and receive teachers’ pensions in the UK. We may move to France. What income tax would be due to France? N.G.

29 January 2020
By Hugh MacDonald

On your English teachers’ pensions only, nothing. However, your state old age pensions would be taxable in France, and this is where your teachers’ pensions, even though not taxable here, would become relevant.

Because you have income that is taxable in the UK (teachers’ pensions) and  income that would be taxable in France (state old age pension) you would have two sets of personal allowances, two sets of low income tax bands that rise, and two sets of tax rates that rise.

This is an unfair advantage over other taxpayers who only have one set of allowances, tax bands and rates.

Accordingly, the French remove this advantage, first allocating, but not taxing, your teachers’ pensions for use against the personal allowances, tax bands and rates.

All other income is then added and is taxed at the relevant tax rate of the relevant tax band.

The consequence is that the teachers’ pensions are used to push up the tax rate and bands that would otherwise have been applied to your state pensions had you only had the state pension income.

 

Reader's query answered by Hugh MacDonald

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