HOW DOES FRANCE TAX MY UK PERSONAL PENSION PLAN ?

Sep 30, 2019

France Tax Personal Pension

Tax and social charges applied on Lifelong annuities in French : “rentes Viageres à Titres Onéreux in France

Life annuities come from the conversion of a savings product, such as a life insurance contract, a French PERCO or foreign Personal Pensions Schemes.

 

Tax regime for lifelong annuities

Life annuities are not taxed in full but only on a percentage of distributed income. This allowance is based on the persons age and as follows:

– 70% for an annuitant under age 50
– 50% for an annuitant aged 50 to 59
– 40% for an annuitant aged 60 to 69
– 30% for an annuitant over 69 years of age

In the case of a life annuity that is reversible to the surviving spouse, the administration retains the percentage corresponding to the oldest of the beneficiaries of the annuity.

Social charges applied on lifelong annuities

The taxable portion of the pension is subject to social security contributions on income from assets or investments at an overall rate of 17.2%. These can be broken down into:

– 9.2% of CSG
– 0.5% of CRDS
– 7.5% solidarity levy

“S1” holders in theory pay their social contributions in their home country, and according to EU / EEA Directives should not pay Social charges in France.

Regarding British S1 holders, you might not have to pay social charges in France, however, we prefer not to develop this subject as this may change radically after the 31st of October 2019.

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