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.

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. 1 ·The ‘five-year rule’ applies,
meaning an expatriate claiming
transfer tax exemption must
remain an EU resident for five
consecutive tax years.
five-year rule
3 ·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.
tax liabilities
2 ·Breaking the UK pension rules
can also attract additional
penalties of as much as 55% of
your pension wealth.
UK pension rules
4 ·The highest tax band is 45%,
which applies to revenues of
over €168,994 within the tax
year.
tax band

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/