I can’t advise on what to do with a private pension but can tell you that I declared French tax residency to HMRC in June 2024 after receiving my first French tax demand, as they needed that as proof I was in the French tax system. However, they still continue to tax my UK company pension and now owe me approaching two years of tax refund. I keep calling them only to be fobbed off that it’s in process. Very very frustrating. Just be ready for things not to run smoothly!

 

Yeah 🙄. I expected that anything that can't be done online with HMRC is not going to go smoothly.

 

I'm trying to weigh up the pros and cons of the two main options of accessing a private pension early for use in France.....

1) Do you have enough experience of France to be certain that you will remain here?

2) What's the rush?

3) Are you able to make use of this current tax year to take a 'lumper'?
You can then do it again from April 6th, leaving only a 12 month wait to take a third bite before you move.

3) No experience of cross-border transfers, but presumably it has to go to another pension provider.
When this occurred within the UK there used to be a 4% transfer fee.
Read your current provider's small print closely.

 

Yes 🙂

Have you been to the UK recently? 😳

No. Can only take the 25% tax free chunk before I leave otherwise I'm in the 40% band. The option to transfer at 7.5% is a full cash in of the pension and a move of the cash to France. It's probably the best option but only if a) there are no further social charges and b) I can easily get a tax code for the pension provider to avoid emergency tax on the full withdrawal, which I'd then have to reclaim, which would no doubt cause problems with having the 7.5% option applied to all of it.

 

I think you need to take advice from a professional tax adviser Pension draw downs may not be treated as income in France and may be subject to higher taxes etc and may not be the best course of action for the longer term
Under the Anglo French tax agreement UK private pension income is taxed in France with it being paid tax free in the UK

 

Yes, if you are a French tax resident the 25% UK tax free portion is taxed in France.

 

All info seems to point to extraction from drawdown pots is just straightforward pension income, taxed in France but not UK as you say. The problem seems to be to that HMRC is slow to process applications for the zero tax code to give to the pension providers to avoid double taxation.

 

Useful advice. Thanks

 

if you need a visa to live in France I would keep the pension as it shows the French that you have regular money coming in. They really do not like lump sums in the bank as it can be spent at anytime and then you would not meet the income requirements.

 

Thanks for the advice on forums.

I submitted form DT France which seems to be form 226, although I can’t see that number on the pages.

The French tax authority refused to sign it but sent a certificate confirming me as a tax resident of France. I recall now that was the main delay to submitting the documents to HMRC as they wouldn’t issue the certificate before I submitted my first tax declaration. They finally issued the certificate in July 2024…, but the tax refund dates back to May 2023 when I moved to France. Only 22 months of lost interest so far 😢.

Advice to others. If flexible on when to move to France and getting Uk tax back as fast as possible is important, choose end of calendar year so you can submit your first French tax declaration for that year, allowing the certificate of tax residency to be issued June or July the following year. Add on HMRC delays and you’re still looking at probably over a year so allow for that in your cash flow calculations!!

Bonne chance!

It appears my luck was in.
After filling in the DT France form I had it stamped by Impôts within a few days and submitted to HMRC. I have just had my tax back via the pension providers, 8 weeks of receipt by HMRC!

Is the a record?