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Retirement Planning - Transferring UK Pension to France

The Chase Buchanan Wealth Management Bordeaux team explains some potential options, the pros and cons, and why we always recommend seeking professional financial advice before making any long-term decisions.

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Retirement Planning - Transferring UK Pension to France

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  1. RETIREMENT PLANNING Transferring UK Pension to France

  2. Introduction: Whether you are relocating to France in retirement, moving with your family or exploring the opportunity of life overseas, deciding whether to take your pension with you – and how to go about it – can make a significant difference to your future income. Here, the Chase Buchanan Wealth Management Bordeaux team explains some potential options, the pros and cons.

  3. Managing Your Pension When Moving to France Leaving a pension in situ without taking any action can limit your future pension income, with the complexities of exposure to UK tax charges, currency risk, and potential caps on the pension commencement lump sum value you are permitted to withdraw.

  4. Managing Your Pension When Moving to France Cont… There is the possibility that the recently abolished Lifetime Allowance (LTA) will be reintroduced into the UK legislation following next year’s general election. Should that happen, owners of UK pension savings above £1 million, or anticipated to reach this value, will have further UK tax to account for, eroding the total value of their retirement wealth.

  5. How to Transfer a UK-Based Pension to an Overseas Pension Scheme

  6. There are two primary ways British expatriates relocating to France transfer their pension assets: 1. Self-Invested Personal Pension (SIPP) 2. Recognised Overseas Pension Schemes (ROPS) Both pension transfers have pros and cons, but it is important to note that France has no HMRC-approved ROPS.

  7. Tax Implications of Transferring Your UK Pension to France

  8. The majority of pension transfers do not attract the 25% Overseas Transfer Charge, either because the expatriate selects a UK-based SIPP or because they are transferring a UK pension fund to the same country as their place of residence. Rules apply throughout the EEA, so if you were to relocate to France and transfer your pension to a ROPS elsewhere in Europe, you would remain protected.

  9. Tax Implications of Transferring Your UK Pension to France Cont…

  10. five-year rule • tax liabilities • UK pension rules • tax band 1 3 2 4 ·The ‘five-year rule’ applies, meaning an expatriate claiming transfer tax exemption must remain an EU resident for five consecutive tax years. • ·In terms of ongoing tax liabilities, pension income will normally be subject to income tax, with the current tax rates beginning at 11% on earnings above €10,777. • ·Breaking the UK pension rules can also attract additional penalties of as much as 55% of your pension wealth. • ·The highest tax band is 45%, which applies to revenues of over €168,994 within the tax year.

  11. Need Help? For more information about transferring your UK pension to France or picking the most suitable solutions, please get in touch with the international pension transfer & local team in Bordeaux or the Chase Buchanan Wealth Management UK Administration Centre.

  12. Source: https://chasebuchanan.com/transferring-your-uk-pension-to-france/

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