British expats residing in France claim they have been hit with five-figure tax payments on their public sector pensions despite longstanding legal guidelines which should defend them from French taxes. Those who say they are affected are retired public servants in receipt of UK Government pensions, including lecturers and police officers.
These pensions should only be taxable in Britain and should not be subject to French income tax and social expenses under the UK-France Double Taxation Convention (DTC), which came into impact in 2010. A tax credit cancels out any legal responsibility in France, where they still have to be declared, according to the information outlet, The Connexion.
British retirees who obtain a state pension can apply to the NHS for an S1 kind. This entitles them to state healthcare in France, which is paid for by the UK Government.
Those who retire early, who have yet to attain the UK state pension age, do not qualify for an S1. However, under the DTC public sector pensions have traditionally been exempt from French taxes.
Retired police officer, Andy Pickwick, 60, moved to France with his spouse in 2020. He informed the same publication that he was informed to pay for healthcare because he did not have an S1 kind.
The couple lost a problem they introduced after receiving a invoice for social expenses based mostly on their 2023 income. Mr Pickwick is now hoping HMRC will help clear up the downside.
Pensions in France are usually subject to prélèvements sociaux, which interprets into English as social expenses. These help fund the nation’s social security system.
Mr Pickwick said: “The tax office said you have to pay because you do not have form S1… I said we don’t need it because they are government pensions, under the DTC’s article 19. They think we’re not paying for health cover anywhere.”
He said members of a Facebook group he set up to deliver collectively those affected have shared related experiences.
The former police officer, who retired aged 55, added: “My accountant’s only advice was to take out private health cover. I’m seriously considering selling our house and going back.”
French tax officers reportedly informed Mr Pickwick his authorities pension was classed as a pre-retirement benefit, thus placing it beyond the scope of the double taxation guidelines.
Mark Taylor said he suffered fairly a hit when he was billed €3,500 (£3,020) in 2023. The retired police officer’s appeal succeeded, but he said it appeared people in other elements of France have not had their appeals upheld.
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