Tax declaration in France: what happens about my UK pensions?

Reader question: I am trying to work out which UK pensions remain taxable in the UK when I obtain a visa to become a fiscal resident in France. Is my local council or my NHS pension included? Would I have to complete a tax return in both countries? I hope to move this year. K.K.

This concerns so-called ‘government’ pensions, which are usually paid by the Paymaster General for past work in the state sector and include the armed forces, firefighters, police and state teachers, for example.

Local authority pensions are included in this category. NHS ones are only deemed ‘government’ if also paid by a local authority.

A state pension is paid by the Depart­ment for Work and Pensions (DWP), and is not considered to be a ‘government’ pension in this sense.

As a French tax resident, you still have to declare government pensions to France annually with the rest of your income. This is not for it to be taxed again but so France has the full picture of your worldwide income.

There is a specific way to declare such pension income, including inserting it in section six of the 2047 foreign income form (online or on paper) and in box 8TK (on the 2042C for the paper form), which ensures it attracts a tax credit to nullify French tax.

Most recipients do not also have to complete an annual UK income tax return.

To understand more about French income tax declarations download our helpguide, Income Tax in France 2022 (for 2021 income). As a digital, downloadable guide, priced €14.90, it was last updated on April 8.Order your copy here

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