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Tax on UK State Pension

Posted by danot - Created: 4 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by chemin vert - 3 years ago

walnut, surely it's right that your Government pension is taken into account when considering the tax band that you are placed in when paying tax on your UK state pension in France. To ignore it would be unfair as your split income would be getting tax advantages in both countries. It would be like having your cake and eating it.

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Posted by Frisbest01 - 3 years ago

My wife and I are both in receipt of  'uk government pensions' which are taxed in the UK and the state pension. We declare both sources of income on our tax return (forms 2047 and 2042) and receive a tax credit in proportion to the income taxed in france. The total tax payable is initially assessed as if the income is fully taxed in france then a tax credit is given in proportionate to the income taxed in the UK.

As an example, if the total income was 45,000€ of which 30,000€ is government pension taxed in the UK and 15,000€ is state pension - then the tax credit would be 66.66% - you would only pay 33.33% of the french tax liability.

This works and is the proper treatment under the France/UK Double Taxation Treaty.

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Posted by countrydweller - 3 years ago

When you get your Avis des Impots you should see on page 2  crédit d'impots sur rev étrangers,which indicates that you have been given a credit for the tax paid in the uk.It does not equate to the sum actually paid but is calculated on the amount you would have paid if the pension was taxed in France

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Posted by walnut72 - 3 years ago

We pay tax in uk on a civil service pension.

The state pension is paid into french bank direct in euros and is taxed in France.

There is no double taxation! apparently

However the gross civil service pension is added to the state pension and in so doing pushes up into the next bracket thereby increasing the rate of tax paid on said state pension, by stealth that is double taxation I have now lost count of the times I have been to Les Impots and they refuse to discuss it.

Ironically if the civil service pension could be paid tax free and declared as such we would end up paying less tax.


Have a read it is interesting

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Posted by countrydweller - 3 years ago

When you say UK GOvt pensions what do you mean exactly-if it is the age related pension then you should not be paying tax on it in the UK it should be taxed only in France.You achieve this by filling in the Dual taxation form available on the HMRC website getting it stamped at your local impots and sending it off to HMRC.The civilSevice pension will always be taxed in the UK but if you have an S1 you should not be paying any social charges(not that you would on your civil service pension anyway)


This tax year in the UK sees the introduction of exchangeable tax relief between married/civil partnership partners.So if your spouse does not use all his/her tax allowance in the UK they can transfer up to 10% of their total allowance.See the HMRC website for details but you cannot apply on line you have to complete a form which has not been printed yet as they forgot about people living abroad or not having secure internet access.You have to phone HMRC

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Posted by CybiDev - 3 years ago

Re this business of taxation on Government or Civil Service pensions. We have been over here for 7-years and despite annual visits to the French tax offices in Guingamp we still pay income tax on our Civil Service and UK Govt. pensions. The new regulations whereby you claim " credits " is nothing short of ridiculous in that it bears no relation to the amount paid - the percentage depending upon who you see at the time and it being so small it barely pays for a postage stamp. Our experience has been that if you go to the tax offices on two or three separate days and talk to different members of the taxation staff, they all have a different opinion upon how the regulations are interpreted ! So we have finally given up on trying to get the whole thing sorted out - patience being short both sides of the counter and it does nothing for my blood pressure. Letters from HM Inland Revenue in French has no influence at all. In fact the last time I spoke to someone at the Inland Revenue in the UK I was advised to be " more assertive ".......!!! We have no truck paying French income taxes but we do feel rather strongly about paying in the UK. This is our permanent Home with no other property and I begrudge paying for services and benefits to people in the uk.  

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Posted by countrydweller - 4 years ago

 Brionybob I take it that you are referring to UK residents if you are french resident then the age related pension is taxed in France not the UK

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Posted by brionybob - 4 years ago

I think one of the common misconceptions is that UK state pension is not taxable in the UK. It is taxable but because it is always set against your tax allowance first it just uses up your tax allowance. Any remaining tax allowance is then set against your other pensions.

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Posted by countrydweller - 4 years ago

Yes but not everyone puts what they mean-people have said to me or written on this forum that they get a state pension from the UK meaning they get a civil service pension or say they get a retirement pension when they mean their occupational pension etc so just because you put something it does not mean that the person reading it or trying to help understans exactly what you mean

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Posted by danot - 4 years ago

As it says in the header 'Tax on UK State Pension'