HELPLINE: 
Tax-efficient planning for British expats with S1 status
The situation. James*, a 68-year-old British expat, lives permanently in France and holds an S1 form, exempting him from French social charges on pension income.
With a significant UK pension, he wanted to access his capital tax-efficiently and reinvest it within a structure that supports long-term growth and succession planning.
Overall process. James transferred his UK pension into an FCA-regulated International SIPP (ISIPP), avoiding tax and overseas charges. He applied for an NT (“no tax”) code, allowing a full pension withdrawal from the UK tax-free once approved. While waiting (usually around 6-8 months), the funds remained invested.
Once withdrawn, the capital was taxed in France at just 6.85%, due to the S1 exemption – which also entitles holders to a 9.1% saving in French social charges on pension withdrawal.
James reinvested it into a French assurance vie, benefiting from tax deferral on investment gains and reduced tax on future withdrawals.
After eight years, he’ll also receive annual tax allowances and improved inheritance options – it allows €152,500 per beneficiary to pass outside the French inheritance system, avoiding probate and limiting tax for heirs.
Risks. Structural and administrative risk is low while funds remain regulated and secure. Investment risk is managed via diversification and clean share classes. NT code delays are rare and any withheld tax is reclaimable.
Fees. Total setup: ~£3,500 per transfer, plus £400 per extra pension involved, capped at £1,000, and £400 to obtain the NT code.
Takeaway. James’ case shows how expats can unlock pensions tax-efficiently and build wealth confidently within French rules.
*Names have been changed for confidentiality.