Taxation on Foreign Pension (France)

My parents have come to retire from France to the UK. Can someone please confirm where their French pension is taxable? They are: - French nationals - Reside in the UK - Have never worked in the UK, only in France. According to Article 18 'Pensions' from the 'UK/France double taxation convention': ' Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid in consideration of past employment to a resident of a Contracting State shall be taxable only in that State.' From this I understand that their French pension is only taxable in France. According to the paragraph 2 of Article 19: ‘[…] However, such pension shall be taxable only in the other Contracting State if the individual is a resident and a national of that State without being also a national of the first-mentioned State.’ From this I understand the exception is when someone has the UK citizenship. Again, my parents are French nationals only (none of them has the UK citizenship) so their pension remains taxable only in France. However, I am getting a different answer from ‘ Tax on foreign income’ > ‘Foreign income that's taxed differently’ > ‘Pensions’ (Gov website): ‘You have to pay tax on pensions if you’re resident, or were resident in any of the 5 previous tax years. You also pay tax on any foreign pension payments, including unauthorised payments like early payments and some lump sums. Check with your pension provider to find out how you’ll be taxed’. This is now contradictory to Article 18/19. Can someone please confirm where their French pension is taxable?

Hi Patrick Dubois,
As they are French nationals, they fall under paragraph 2 of Article 19 in that whilst they are resident in the UK they are not UK nationals and  as such the pension would be liable in France.
Thank you. 

HMRC Admin 25, Sorry but I believe you may have misinterpreted Patrick's question, and I am not sure his question is completely clear anyway. We do not know whether he is talking about: * an occupational pension, that would be dealt with by Article 18, awarding taxing rights to the UK; * a government service pension, that would be dealt with by Article 19(2), awarding taxing rights to France; or * the French state pension, that be dealt with by Article 23(1), awarding taxing rights to the UK. Patrick, perhaps you can confirm the nature of your parents' various pensions - each one has to be considered on its own merits.

Hello, I have a similar question I am have both French and UK nationality. I am now tax resident in the UK, but was previously tax resident in France. Whilst I was in France I took out a personal pension investment product called a PERIN which I can cash in when I reach retirement age. My questions are the following assuming that I remain tax resident in the UK - will the PERIN be taxed in the UK or in France when I cash it in? - if it is taxed in the UK, how will it be treated ? Many thanks

Hi ,
 

As UK resident you will report it here. Please refer to : Tax on foreign income  . Thank you .