If you’re preparing to transfer your UK pension to France, it’s important to understand the steps involved, the options available, and how to manage your pension efficiently once it’s transferred. This guide offers a clear roadmap tailored to the needs of British expats moving abroad.
Key Takeaways
- Learn the eligibility criteria and steps to transfer a UK pension to France, with a focus on the benefits of using an International SIPP, the modern, flexible solution for cross-border pension management.
- Consult a regulated financial adviser who understands both UK and French systems to ensure a tax-efficient transfer that meets your retirement objectives.
- After the transfer, actively managing your pension investments and reviewing performance regularly is key to securing a financially stable retirement in France.
Understanding Pension Transfer Options
When relocating to France, you have a few ways to manage your UK pension. You can leave it in the UK under your existing scheme, access it from abroad, or transfer it to a more internationally suited structure. Of these, International SIPPs have become the preferred route for many expats due to their flexibility and cost-efficiency.
If you have a defined benefit pension (final salary scheme), there are special considerations before transferring. Defined benefit pensions offer valuable guarantees, and transferring them may result in the loss of these benefits. Professional advice is essential before transferring a defined benefit pension internationally.
An International SIPP allows you to consolidate your UK pensions, access a broad range of investment choices, and draw income in euros – all while remaining under UK regulatory protection. It offers full transparency and simplicity when managing your pension income from overseas.
While QROPS (Qualifying Recognised Overseas Pension Schemes) were once popular, they are now far less advantageous for expats in France following the UK’s April pension reforms. QROPS stands for ‘Qualifying Recognised Overseas Pension Scheme’, and a recognised overseas pension scheme must meet HMRC requirements to avoid tax penalties. QROPS is a type of overseas pension scheme, but not all overseas pension schemes are recognised by HMRC. In many cases, QROPS now incur a 25% overseas transfer charge unless specific conditions are met. For most individuals, International SIPPs provide a more practical and compliant solution.
Eligibility for Transferring UK Pensions
To be eligible to transfer your pension, your scheme must allow transfers, and you will generally need a minimum fund value of around £70,000 to make the process worthwhile due to advisory and administration costs.
You must check with your pension provider to confirm you are eligible to claim a transfer, as the process of claiming a transfer may vary between providers.
Importantly, if you opt for an International SIPP, there’s no need for the overseas scheme to be on HMRC’s QROPS list. SIPPs remain UK-based and FCA-regulated, which makes them an ideal option for expats wanting UK protection while living abroad. Claiming a transfer from some schemes may require additional steps or documentation.
Steps to Transfer Your Pension
- Speak to a Regulated Adviser
Engage a cross-border financial adviser who understands UK pension rules and French tax regulations. They will guide you through the most suitable transfer strategy. - Assess Your Existing Pension Scheme
Review the terms, potential exit fees, and tax implications of your current UK pension with your pension provider. If you have multiple pensions, check with all relevant providers, as some schemes may have restrictions or benefits you’ll want to preserve. - Set Up Your International SIPP
Your adviser will help you open an International SIPP tailored for expats. You will need to decide which transfer option is best for your circumstances before proceeding. It allows for euro income payments, flexible access and multi-currency investment options. - Submit the Relevant Transfer Forms
To initiate the transfer, you’ll complete the required documentation, such as provider-specific forms and HMRC notifications. The process of claiming a transfer may involve submitting forms to both your current provider and the new provider. - Receive and Manage Your Funds
Once the transfer completes, you can begin managing your retirement income in line with your goals, whether that’s growth, income or preservation.
Tax Implications of Pension Transfers
Whether you pay UK tax or pay tax in France on your pension income depends on your residency status and the double taxation agreement between the UK and France. Pension income from the UK is generally taxable in France, not the UK, due to the double taxation treaty between both countries. However, you may still have to pay UK tax or pay UK tax on certain types of UK income, such as government service pensions, which remain taxable in the UK. How much tax you owe on your pension income can vary depending on your personal circumstances and the laws in both countries, as well as the tax purposes for which your income is assessed. It is important to understand the laws and tax rules in all the countries where you have income or residency, as this can affect your obligations. Pension money and other UK income may be subject to different tax treatments, and paying into a pension while abroad can have implications for tax relief. The broader society and legal framework in both the UK and France can also impact how pensions are taxed and paid.
Social charges in France typically apply to pension income at a rate of 9.1%, but you may be exempt if you hold an S1 health certificate or qualify under certain exemptions. Tax relief may be available in certain situations, and you should check if you are eligible for a refund of any UK tax paid. Lump sum withdrawals may be taxed differently, so working with a tax-aware adviser is essential.
Be cautious with QROPS: a 25% overseas transfer charge may apply unless you’re living in the same country as the QROPS provider – which is rarely the case for French residents. Transferring to a non-recognised overseas pension scheme can trigger a tax charge, so you should be aware of the tax purposes for which your pension income is assessed. This is one of the main reasons International SIPPs have emerged as a superior alternative.
Choosing the Right Pension Scheme
When selecting a pension vehicle, consider not only the immediate fees but also long-term flexibility, currency options, and administrative transparency. Some individuals may prefer to purchase an annuity for guaranteed income, and this option should be considered alongside drawdown. Your choice should be based on your pension savings, future plans, and personal circumstances.
International SIPPs:
- Regulated by the UK Financial Conduct Authority (FCA)
- Offer flexible drawdown options
- Allow investment in multiple currencies
- Avoid the overseas transfer charge
- No need to be tied to your country of residence
They are particularly useful for those who may move again in future or want to consolidate multiple pensions under one internationally accessible account.
Transferring Your UK State Pension to France / State Pension Abroad
Receiving Pension Payments in France
With an International SIPP, you can receive pension income directly into a French bank account. Alternatively with your state pension, you can choose to have your pension paid into an overseas account, such as an overseas bank account or a UK bank account, depending on your preferences. Some expats use a building society for receiving pension money, as this can facilitate international transfers and currency exchange. This flexibility allows you to manage your pension money and access your money from abroad in the way that best suits your needs. This eliminates unnecessary foreign exchange steps and helps you better manage your household budget in euros.
Currency management matters. The amount of money you receive may fluctuate due to exchange rates, so managing your pension money efficiently is key. Fluctuations in exchange rates can affect how much you receive each month. To optimise your pension income:
- Use market orders to target favourable rates
- Work with a currency transfer specialist for better rates than retail banks offer
- Discuss hedging strategies with your adviser if you want stability
Pension Payment Schedules and Frequency in France
Consulting a Financial Adviser
Cross-border financial planning is complex. From residency status to tax rules and pension accessibility, many expats find themselves overwhelmed without specialist guidance. You may also need to contact the International Pension Centre or the relevant pension authority for guidance on your specific situation.
At Harrison Brook, our advisers are experts in UK and French financial regulations. We help clients navigate the pension transfer process from start to finish and ensure their retirement plans remain on track post-transfer. With UK advisers now restricted from advising EU residents post-Brexit, speaking to an EU-based financial planning firm like ours has never been more crucial.
Managing Your Pension After Transfer
After the transfer, your pension should not be left untouched. If you live abroad for part or all of the year, or have lived in more than one country, this can affect your pension payments and tax obligations. Managing your pension may be different if you live overseas permanently compared to spending only part of the year abroad. The rules can also vary depending on whether you have lived in one country or multiple countries.
As markets and personal needs evolve, your investment strategy should be reviewed regularly.
Ensure your holdings remain aligned with your risk profile, income needs, and tax situation in France. This will help you protect your wealth and sustain a comfortable retirement.
For more on how to manage your investments, see our guide on investing as an expat in France.
Summary
Transferring your UK pension to France with an International SIPP provides flexibility, tax efficiency, and FCA protection — all essential elements for expats planning a smooth and secure retirement abroad.
While QROPS may still suit certain individuals, they are increasingly limited by new rules and charges. For most British expats in France, an International SIPP is the smarter, more future-proof choice.
By working with a trusted financial adviser, you can navigate the entire process with confidence and clarity.
Frequently Asked Questions
What is an International SIPP? An International SIPP is a UK-regulated pension designed for expats. It allows you to consolidate pensions, invest flexibly, and draw income while living abroad.
Is a QROPS still relevant? QROPS can still be used, but recent tax changes have made them less attractive for most expats in France. International SIPPs are typically more cost-effective and practical.
Do I need a financial adviser to transfer my pension? Yes. While not legally required, transferring a pension without regulated advice can expose you to high fees, tax penalties, or unsuitable schemes.
Can I receive UK pension payments in France? Yes, most International SIPPs allow for euro payments directly to your French account, reducing exchange rate risk and bank charges.
Are there taxes on my pension income in France? Yes, pension income is generally taxed in France. However, planning ahead can help you reduce your liabilities and take advantage of exemptions.
When can I claim my UK State Pension if I move to France? You can start claiming your UK State Pension once you reach state pension age, even if you are living in France. Claiming from abroad may involve additional steps, such as providing proof of residence and arranging for international payments.
Take Control of Your Retirement Today
Planning to transfer your UK pension to France? Harrison Brook offers independent, regulated advice tailored for British expats living in Europe.
Book your free consultation today and discover how we can help you optimise your retirement income with an International SIPP that works for you.
