L Austin France wrote: ↑Mon Apr 15, 2024 8:06 pm
Hotrodder wrote: ↑Mon Apr 15, 2024 7:34 pm
I'm totally befuddled reading the posts above. People on state pensions paying tax and social contributions? I never have. I thought there was some sort of double taxation agreement between the two countries. If monsieur taxe man comes a knockin' wanting back taxes he'll have to take it in blood.
Fret not!
The double taxation agreement exists so for Joe Public (Nat Health, teachers etc employees get taxed in UK for some reason) who gets UK state pension there's no UK tax & the amount of pension is accounted for in your French return where if you're a SI holder no social contributions will (should) be taken. Any tax payable is dependant on your total worldwide income. I don't pay UK tax on my private pensions but account for them in my French return. No UK tax is payable on our jointly owned commercial rental property as it's just about covered by our personal allowances but somehow the French taxman gets a cut.
That's my take on it but could be wrong as Mme LAF deals with this sort of thing, baits the Tax Dragons their lair & boy, is she good at it, so I leave these sort of things to her.
Sorry LAF but I at least have found your post confusing to the point of me reading it as being wrong in some detail areas.
The UK OAP is taxed in France for French residents. The Double Taxation Treaty (DTT) ensures that they are not also taxed in the UK. OAP pensions have to be declared as income in France. If this is your sole source of income then you should not break the French zero tax band until perhaps last year (2023 for declaration this year*) and this (for next years declaration).
People with employment pensions may find that these are taxed in the UK if you have been working in a state run organisation:
Civil servants
Forces pensions
Teachers - if employed by the state but not if employed in private organisations.
NHS - some positions are taxed in the UK. Others are not. OH receives an NHS pension but is not covered by the DTT to be taxed in the UK.
For those above, the DTT ensures that the income is taxed in the UK but is not taxed in France.
Other UK pension incomes** are taxed or taxable in France and should not be taxed in the UK, although some (lazy) pension organisations will deduct tax in the UK which you have to claim back from HMRC.
* The big increase in UK pensions from April last year might
just push you over the limit depending in part on the date you receive your pension.
** including those who have QROPS pensions from an original UK source.