Whether you’re retiring abroad or already living overseas, knowing how to take your pension out of the UK is crucial for securing your financial future. If you’re a British expat in France (or planning to be), you likely have questions around taxation, transfer options, and accessing your UK pension across borders.
Understanding the different pension schemes available, including state, private, and workplace pensions, is crucial for making informed decisions about your retirement.
At Harrison Brook, we specialise in helping UK expats navigate their pension options globally. In this guide, we’ll explain how to take your pension out of the UK, whether it’s a State Pension, private pension, or a defined benefit scheme. We’ll also cover tax implications, QROPS, and how to receive your pension in France or another overseas location.
Eligibility and Claiming Your Pension Abroad
Key considerations for expats
As a UK expat, claiming your pension abroad can be a complex process. To ensure you receive your pension without any issues, it’s essential to understand the eligibility criteria and the claiming process. Here are some key considerations to keep in mind:
- Check your eligibility: Ensure you have the required number of qualifying years for the UK State Pension. You can check your eligibility on the GOV.UK website. Typically, you need at least 10 qualifying years to receive a partial State Pension and 35 years for the full amount.
- Notify HMRC: Inform HMRC of your intention to claim your pension abroad. This can be done by contacting the International Pension Centre. Proper notification helps avoid any delays or complications in receiving your pension.
- Choose your payment method: Decide how you want to receive your pension payments. You can opt for a UK bank account or a foreign bank account. Keep in mind that currency exchange rates and bank transfer fees may affect the amount you receive if paid into a non-GBP account.
- Consider tax implications: Understand the tax implications of claiming your pension abroad. You may be subject to UK tax, French income tax, or both, depending on your residency status and the double taxation agreement between the UK and France. Proper planning can help minimize your tax liabilities.
- Seek professional advice: Consult with a financial advisor to ensure you’re making the most of your pension and minimizing tax liabilities. Professional advice can help you navigate the complexities of international pension transfers and tax regulations.
Understanding UK Pension Types
Differentiating between state, private, and workplace pensions
UK pensions come in various forms, each with its own rules and regulations. Understanding the different types of pensions is crucial for making informed decisions about your retirement income. Here’s a brief overview of the main types of UK pensions:
- State Pension: This is a government-funded pension that provides a basic income in retirement. Eligibility is based on your National Insurance contributions. The amount you receive depends on the number of qualifying years you have accumulated.
- Private Pensions: These are personal pensions that individuals can contribute to, often with tax relief. Private pensions can be invested in various assets, such as stocks and bonds, offering the potential for growth. They provide flexibility in how and when you can access your funds.
- Workplace Pensions: These are employer-sponsored pensions that provide a retirement income based on your salary and years of service. Workplace pensions can be either defined benefit schemes, which promise a specific income in retirement, or defined contribution schemes, where the income depends on the amount contributed and the investment performance.
Understanding these different types of pensions can help you plan your retirement strategy more effectively, ensuring you make the most of your pension income.
Can You Take Your UK Pension Abroad?
Yes, you can take your UK pension abroad. Whether it’s a State Pension, private pension, or workplace pension, UK pension providers generally allow you to receive payments if you live overseas. However, how and where you receive it can impact how much you get after currency exchange and taxes.
It’s important to note that government service pensions, such as those from civil service or military employment, have specific tax rules under the UK/France double taxation treaty.
Key considerations:
- You can receive your UK State Pension if you’ve paid enough National Insurance.
- Most private pensions and defined contribution schemes can be paid into a foreign bank account.
- Currency exchange rates may affect the amount you receive if paid into a non-GBP account.
- Taxation can vary depending on the double taxation agreement (DTA) between the UK and your country of residence.
💡 Get personalised pension transfer advice with Harrison Brook today.
How Do You Transfer a UK Private Pension to France?
Transferring your UK private pension to France isn’t a simple lift-and-shift. You’ll typically need to explore a Qualifying Recognised Overseas Pension Scheme (QROPS) or keep your pension in the UK and draw down internationally.
When transferring your pension, consider the tax implications of taking a lump sum payment, which can be taxed at a fixed rate or through various options to minimize tax liabilities.
Your options:
- QROPS Transfer:
- There is currently no QROPS based in France.
- Therefore, any transfer from a UK pension to a QROPS will now trigger the 25% OTC, unless you relocate to the QROPS jurisdiction (e.g. Malta, Gibraltar).
- This effectively closes the door on QROPS as a viable route for most expats in France—at least for now.❌ Example: If you’re living in France and transfer your UK pension to a Malta-based QROPS, you will now pay a 25% tax charge on the transfer amount.
- Leave It in the UK:
- You can keep your pension in the UK and receive payments into a French bank account.
- Certain providers now offer international services, such via a International SIPP.
- Consider the impact of exchange rates and bank transfer fees.
How Are UK Pensions Taxed for Expats in France?
One of the most common questions is: Do expats pay tax on UK pensions?
You must declare your pension income to the French tax authorities to ensure compliance with local tax laws.
- UK State Pension: The UK State Pension is taxable in France. You must declare it on your French tax return.
- Government Service Pensions: These pensions are usually only taxable in the UK. However, they must still be declared in France to avoid double taxation. Accurately reporting your income on your French tax return is crucial to avoid penalties and ensure proper taxation.
- Private Pensions: Private pensions are taxable in France. In addition to pension income, you must also declare any investment income, such as interest, dividends, and capital gains, to the French tax authorities.
The answer is – it depends.
France and the UK have a Double Taxation Agreement (DTA). Under this agreement:
- UK State Pensions and most private pensions are only taxable in France if you’re a French tax resident.
- This means you won’t be taxed twice, but you must declare it in France.
- The UK may still withhold tax unless you submit a France-Individual form via HMRC.
- Lump sum withdrawals may have different rules—speak to a specialist to avoid unnecessary charges.
✅ Find out how we help expats reduce pension tax liability.
Lump Sums and Annuities
Exploring your options for pension withdrawals
When it comes to withdrawing your pension, you have several options to consider. Lump sums and annuities are two popular choices, each with its own advantages and disadvantages. Here’s a brief overview of each option:
- Lump Sums: A lump sum is a one-time payment of a portion of your pension fund. This option can provide a tax-free lump sum, typically up to 25% of your pension pot. However, withdrawing larger amounts may trigger income tax and social charges, depending on your total income and tax residency status. Lump sums offer flexibility and immediate access to funds, but they also require careful planning to avoid depleting your pension savings too quickly.
- Annuities: An annuity is a financial product that provides a guaranteed income stream for life, purchased with a portion of your pension fund. Annuities can offer a predictable and stable income, which can be particularly beneficial for budgeting in retirement. However, they may come with fees and restrictions, and the income provided may not keep pace with inflation.
It’s essential to consider your individual circumstances, financial goals, and risk tolerance when deciding between a lump sum and an annuity. Seeking professional advice can help you make an informed decision that suits your needs, ensuring you maximize your pension income while minimizing tax liabilities.
Can Expats Still Claim the UK State Pension?
Yes, expats who have paid at least 10 qualifying years of National Insurance can claim the UK State Pension.
- For a full State Pension, you’ll usually need 35 years of NI contributions.
- You can claim it from overseas and have it paid into a UK or international bank account.
- However, your State Pension won’t increase annually unless you live in a country that has a reciprocal agreement (France does).
Frequently Asked Questions
Can I get my UK pension if I live in France?
Yes. Both the State Pension and private pensions can be paid abroad. Ensure you provide correct international banking details.
Do I pay UK tax on my pension if I live in France?
Usually not. France and the UK have a tax treaty. You may need to submit HMRC’s France-Individual form to prevent double taxation.
What happens to my UK pension if I move abroad?
It remains accessible. You can transfer some private pensions to QROPS or receive payments overseas.
How can I transfer my UK pension?
Depending on your circumstances, you might:
- Leave your pension in the UK and draw down from it.
- Transfer it to a QROPS.
- Consolidate pensions into an International SIPP.
How many years of NI do I need for a pension?
You need a minimum of 10 years to qualify for a partial State Pension, and 35 years for the full amount.
How much foreign income is tax-free in the UK?
If you’re a non-resident for tax purposes, your foreign income is usually not taxed in the UK. However, UK-source income like rental or pensions may still be.
Where Can You Get Free Pension Advice?
Many expats search for free pension advice in the UK, but beware—free isn’t always comprehensive.
You can:
- Contact Pension Wise or MoneyHelper for basic guidance.
- Speak to your pension provider.
- Use HMRC’s helplines for tax and transfer questions.
But for personalised, regulated advice, especially across borders, you’ll need a qualified international financial adviser.
🤝 Speak to a Harrison Brook adviser – your first consultation is free.
Final Thoughts: Plan Ahead, Retire Smart
Taking your pension out of the UK is possible—and in many cases, straightforward—but getting it wrong can lead to unnecessary taxes, currency losses, and regret. If you’re living in France or planning to retire there, take action early to align your pension strategy with your long-term financial goals.
✅ Get Expert Help Today
Harrison Brook is Europe’s leading fee-based advisory firm for UK expats. We specialise in:
- Pension transfers (QROPS, SIPPs, DB schemes)
- Tax-efficient drawdown strategies
- Cross-border financial planning
👉 Request your free pension consultation now
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